LTCG under share sold
This query is : Resolved
11 May 2021
Listed company Share sold under long term,
Indextion applicable or we caculate CG sale less Cost of share without indextion, bqz Share LTCG Exempt
Indextion applicable or we caculate CG sale less Cost of share without indextion, bqz Share LTCG Exempt
11 May 2021
No indexation.
LTCG calculation is as under.
As per section 112A ,capital gains arising from transfer of a long term capital asset being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust shall be taxed at the rate of 10 per cent of such capital gains exceeding Rs.1,00,000.
This concessional rate of 10 per cent will be applicable if:
a) in a case of an equity share in a company, securities transaction tax has been paid on both acquisition and transfer of such capital asset; and
b) in a case a unit of an equity oriented fund or a unit of a business trust, STT has been
paid on transfer of such capital asset.
The cost of acquisitions of a listed equity share acquired by the taxpayer before February1, 2018, shall be deemed to be the higher of following:
a) The actual cost of acquisition of such asset; or
b) Lower of following:
(i) Fair market value of such shares as on January 31, 2018; or
(ii) Actual sales consideration accruing on its transfer.
The Fair market value of listed equity share shall mean its highest price quoted on the
stock exchange as on January 31, 2018. However, if there is no trading in such shares on January 31, 2018, the highest price of such share on a date immediately preceding
January 31, 2018 on which trading happens in that share shall be deemed as its fair market value.
LTCG calculation is as under.
As per section 112A ,capital gains arising from transfer of a long term capital asset being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust shall be taxed at the rate of 10 per cent of such capital gains exceeding Rs.1,00,000.
This concessional rate of 10 per cent will be applicable if:
a) in a case of an equity share in a company, securities transaction tax has been paid on both acquisition and transfer of such capital asset; and
b) in a case a unit of an equity oriented fund or a unit of a business trust, STT has been
paid on transfer of such capital asset.
The cost of acquisitions of a listed equity share acquired by the taxpayer before February1, 2018, shall be deemed to be the higher of following:
a) The actual cost of acquisition of such asset; or
b) Lower of following:
(i) Fair market value of such shares as on January 31, 2018; or
(ii) Actual sales consideration accruing on its transfer.
The Fair market value of listed equity share shall mean its highest price quoted on the
stock exchange as on January 31, 2018. However, if there is no trading in such shares on January 31, 2018, the highest price of such share on a date immediately preceding
January 31, 2018 on which trading happens in that share shall be deemed as its fair market value.
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