Regarding Long term Capital Gain

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This query is : Resolved

Rajnish (Querist)

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)

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)

31 December 2009 Agree with expertMr.Shahzad

Rajnish

Rajnish (Querist)

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)

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)

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)

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.