05 October 2009
Short Term Capital Asset (STCA) [Sec. 2(42A)] It means a capital asset held by an assessee for not more than 36 months immediately before the date of transfer. However, in the following cases, an asset will be termed as a short-term capital asset if it is held for not more than 12 months immediately before the date of transfer: • Equity or preference shares in a company, whether quoted or not. • Any security e.g. debenture, Government securities, etc. listed in a recognized stock exchange in India. • Zero-Coupon Bonds (w.e.f. A.Y.2006-07 – discussed later in this chapter) • Units of UTI (whether quoted or not). • Units of mutual funds approved u/s 10(23D) of the Act. Note: As per Sec.50, any gain on transfer of a depreciable asset shall be taxable as short-term capital gain (irrespective of their period of holding). Depreciable asset means an asset on which depreciation has been allowed to the assessee under the Income-tax Act
Tax rate If STT paid- Normal slab STT not paid - 15%
Perfect, I would just like to add one more tax rate.
Rate of 20% in case of NRI having Short Term Capital Gains from Foreign Exchange Assets as defined u/s. 115C(b). Eg. STCG on transfer of Shares of Indian Company/other sec (other than u/s. 111A).
Plz add if other expert find something interesting.
CAclubindia
