Regarding Long term Capital Gain

This query is : Resolved

Rajnish (Querist)
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31 December 2009 Dear All,

Long term capital gain(shares) is taxable or not?

For E.g.
I have purchased 100 Shares on 01/04/2007
of Rs. 10 each.
I sold 100 shares on 31/03/2009 of
Rs. 10 each.
Is taxable or not?

Please confirm?

Regards
Rajnish

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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31 December 2009 Dear Rajnish
Long Term Capital Gain from sale of Shares are exempt from tax u/s 10(38) provided-
1)The shares are sold through Recognised Stock Exchange and
2)Securities Transaction Tax has been paid
in any other case it is taxable.

Heera Nahariya

Heera Nahariya (Expert)
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31 December 2009 Agree with expertMr.Shahzad

Rajnish

Rajnish (Querist)
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31 December 2009 Dear Mr. SHAHZAD SAYYED and
Mr. Heera Nahariya.

Thanks your prompt reply.

I have one doubt,
If we are purchase shares in Pvt. Ltd.
Company then long term capital gain
taxable or not?

For E.g.
I have purchased 100 Shares on 01/04/2007
of Rs. 10 each.
I sold 100 shares on 31/03/2009 of
Rs. 10 each.
Is taxable or not?

Please confirm?

Regards
Rajnish

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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31 December 2009 In that case it is taxable, but where is the gain in this transaction? Purchased @ 10/- and sold @ 10/-. So no gain there.

Rajnish

Rajnish (Querist)
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31 December 2009 Thanks Tarun

When shares value is @ 15 each
Long term capital Gain of Rs. 500
i.e. 1500-1000.

What is tax rate?

Reagrds
Rajnish

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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31 December 2009 In that case, LTCG rate is 20% flat but as the period is of more then one year, you can take benefit of indexation also, so that gain shall be reduced, and hence the tax liability.