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capital gain tax on shares

22 December 2018

If I am under 30% income tax slab and I am selling my shares with profit of around 3lakhs(long term holding),I have to pay taxes based on my income tax slab or only 10% of ltcg above 1lakh profits(for 2 lakhs).

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4 Replies

Sachin C (Tax Consultant) (107 Points)
Replied 22 December 2018

As per the New Amendments in the Finance Act 2018, LTCG between 1st February and 31st March 2018 shall continue to be exempt under Section 10(38) provided STT is paid. Further LTCG arising on or After 1st April 2018 on sale of Equity shares or units of Equity (MF) shall be taxed at 10% in excess of Rs 1 lacs i.e as you have said it in your case an LTCG of 3 lacs- upto Rs1 lacs is tax free and the Rest 2 lacs shall be taxed at 10% flat rate.

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Natraj Vaithianathan (31 Points)
Replied 22 December 2018

sir,I m in 30% income tax slab(salary income)..still same 10% tax applies to me on ltcg

Sachin C (Tax Consultant) (107 Points)
Replied 22 December 2018

Yes Mr. Natraj, as this is a special income being taxed at a special Rate @ 10%. The Income tax Forms that would be released within the end of April or First Week of May 2019 would provide a better clarity on the same. But as far as the law is concerned it is currently as i have discussed above. You already being in the 30% tax bracket shall not be of a concern for you.

Thank You,

Nice Talking to you,

Sachin C