LTCG on sale of shares

This query is : Resolved

Morning star (Querist)
Follow

11 June 2010 Mr.x sold shares of xyz inc. which is traded on New york stock exchange. Mr.X is ordinarily resident in India. Is Mr.X liable to pay tax on capital gains if

1. shares were held for less than 1 year

2. shares were held for more than 1 year

3. Mr.X sold 'Options' instead of shares

4. Mr.X received such shares under ESOP from his company

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

11 June 2010 1. Yes
2. Yes
3. Would be taxable as business income
4. Yes

Even long term capital gains would be taxable in case of shares sold on the exchange as STT has not been paid on the sale of shares.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

11 June 2010 AGREED WITH MR. ADITYA.

Morning star

Morning star (Querist)
Follow

11 June 2010 What is the date to be considered for exchange rate -

1. Execution date

OR

2. Date of credit of Amount into Assessee bank a/c

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

11 June 2010 Execution date

Message likes : 1 times

Morning star

Morning star (Querist)
Follow

11 June 2010 Can Transaction fee charged be shown as a deduction from gross sale proceeds?

Morning star

Morning star (Querist)
Follow

11 June 2010 Thank you for the clarification. Is indexation benefit available on such transaction?i.e. can it be taxed at 20% after availing indexation benefit Or can it be taxed at 15% without indexation?

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

11 June 2010 Transaction fees can be considered as a cost of transfer.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now