Tax on long term capital gain

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Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2012 i have sold 50000 equity shares of a private ltd co.(unlisted shares)on 28.2.2012 at Rs.5000000/-,these shares were purchased by me at Rs.500000/- on 1.1.2011.(i hold about 14 month)and earn a gain Rs.4500000/-,later on I invested in REC Capital gain tax saving bond of Rs.1500000/- on 15.3.2012 and investment in purchases of Residential flat at Rs.3000000/- on 25.3.2012,i have no flat except that one whether there were any tax liability will arises on me on the said capital gain

Amol S Joglekar

Amol S Joglekar (Expert)
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21 July 2012 It is short term capital gain.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 July 2012 Being a smart tax payer, you can get indexation benefit also on the shares sold by you.
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The long term capital gain arising to you is eligible for exemption under Section 54EC of Rs.15.00lac.
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However, for getting full exemption of the LTCG, the calculation of exemption U/s 54F is based on the net sales consideration i.e. 50.00lac. In the given circumstances you will get exemption of 30*45/50=27lacs.
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So if you invest Rs. 18.00 lacs in place of Rs. 15.00 lacs you may enjoy the full exemption benefits.
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