Stcg tax rate
This query is : Resolved
30 June 2012
Which tax rate is applicable for Company & Firm in case if short term capital gain arise?
30 June 2012
rate of tax is 30%
Message likes :
1 times
02 July 2012
what will be in case of long term capital gain?
02 July 2012
Short term capital gain on listed shares @20%
other than shares @30%
Listed shares are exempt from tax
capital gain on other than listed shares @20%.
other than shares @30%
Listed shares are exempt from tax
capital gain on other than listed shares @20%.
02 July 2012
Is 20% for short term or long term, please elaborate with example
25 July 2025
Sure! Here's a clear explanation of **Short Term Capital Gains (STCG)** tax rates for **Companies and Firms**:
---
### 1. **Short Term Capital Gains (STCG) Tax Rate**
* For **Companies & Firms**, STCG is **taxed at the normal corporate tax rate** which is **30% (plus applicable surcharge and cess)**.
* STCG means capital gains on assets held for **less than 36 months** (except for some assets like shares which have different periods).
---
### 2. **Long Term Capital Gains (LTCG) Tax Rate**
* For **companies and firms**, LTCG on **other than listed shares** is generally taxed at **20% with indexation benefit**.
* **Listed shares** LTCG are usually exempt if sold on a recognized stock exchange with STT paid (subject to conditions). (This exemption is more applicable to individuals and HUFs; companies do not generally get this exemption.)
---
### 3. **Special case for Listed Shares (applicable mostly to Individuals, not Companies/Firms):**
| Holding Period | Tax Rate on Listed Shares |
| ------------------------ | ------------------------------------------------------------------- |
| Short Term ( 12 months) | Exempt from tax (for individuals/HUFs) |
*Note: Companies do not get this exemption and are taxed at 30% on capital gains irrespective of listed or unlisted shares.*
---
### **Example for Company:**
* Company buys a piece of land on 1 Jan 2020 for ₹10 lakhs.
* Company sells the land on 31 Dec 2021 for ₹15 lakhs (holding period < 36 months).
* Gain = ₹5 lakhs (Short Term Capital Gain).
* Tax = 30% on ₹5 lakhs = ₹1.5 lakhs (plus surcharge and cess).
---
If you want, I can also explain the rates for individuals or other types of assets. Would you like that?
---
### 1. **Short Term Capital Gains (STCG) Tax Rate**
* For **Companies & Firms**, STCG is **taxed at the normal corporate tax rate** which is **30% (plus applicable surcharge and cess)**.
* STCG means capital gains on assets held for **less than 36 months** (except for some assets like shares which have different periods).
---
### 2. **Long Term Capital Gains (LTCG) Tax Rate**
* For **companies and firms**, LTCG on **other than listed shares** is generally taxed at **20% with indexation benefit**.
* **Listed shares** LTCG are usually exempt if sold on a recognized stock exchange with STT paid (subject to conditions). (This exemption is more applicable to individuals and HUFs; companies do not generally get this exemption.)
---
### 3. **Special case for Listed Shares (applicable mostly to Individuals, not Companies/Firms):**
| Holding Period | Tax Rate on Listed Shares |
| ------------------------ | ------------------------------------------------------------------- |
| Short Term ( 12 months) | Exempt from tax (for individuals/HUFs) |
*Note: Companies do not get this exemption and are taxed at 30% on capital gains irrespective of listed or unlisted shares.*
---
### **Example for Company:**
* Company buys a piece of land on 1 Jan 2020 for ₹10 lakhs.
* Company sells the land on 31 Dec 2021 for ₹15 lakhs (holding period < 36 months).
* Gain = ₹5 lakhs (Short Term Capital Gain).
* Tax = 30% on ₹5 lakhs = ₹1.5 lakhs (plus surcharge and cess).
---
If you want, I can also explain the rates for individuals or other types of assets. Would you like that?
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