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Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2010 suppose if a man sale more then one stocks (share) whithout STT, in off market , he will have to pay tax ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 August 2010 Yes he will have to pay tax on the capital gains.

Gain on sale of shares held for more than one year on stock exchange on which STT is paid is only exempt u/s 10(38).

If the share is a listed share then tax rate @ 10% without indexation and 20% with indexation.

If share unlisted then tax rate 20% with indexation.

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2010 thank u,further if he has shock more ther 36 month then he sale without STT the, is there any tax payble?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 August 2010 Shares to be long term need to be held for more than 12 months only. Unlisted shares sold after being held for more than 12 months will taxable even if held for years together.

However the gain can be invested u/s 54EC & 54F to get exemption from the gain.

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2010 kindly state it with example, I could not understand about u/s 54EC & 54F to get exemption from the gain.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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12 August 2010 You can invest the gain on sale of shares in purchasing infrastructure bonds as prescribed in that section like NHAI bonds or REC bonds. The bonds term is 3 years.

And u/s 54F u can invest in purchase of new house property if certain conditions as prescribed in that section are fulfilled.

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