Ltcg on sale of shares of a listed company

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PIYUSH SINGLA (Querist)
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25 May 2013 AS WE KNOW, LTCG ARISING ON SALE OF SHARES OF A LISTED COMPANY IS EXEMPT UNDER SECTION 10(38). HOWEVER, IF TRADING OF SHARES HAS BEEN SUSPENDED AT STOCK EXCHANGE, CAN THE EXEMPTION U/S 10(38) BE AVAILED.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 May 2013 The capital Gains is exempt subject to one more condition that the transaction is chargeable to security transaction tax.
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STT is payable when the transaction is a STT taxable transaction and for that the prime requirement is- it should take place in a recognised stock exchange.
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As such, the benefits of Section 10(38) would not be available.

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