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Capital Gains on sale of listed Eq. Shares (BSE) subject to STT - taxability in FY 2018-19

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Rajib Saha

Accounts Officer

239 Points Posted on 07 May 2020

Sirs,

My question is :

Whether Capital Gain on sale of Equity Shares traded in BSE during FY 2018-19 is taxable? . The shares were held by the Assessee for Long Term . STT was applicable on these sale.

What if, these were held for Short Term.

I shall be grateful if a response is received

Replies (4)

Quick Summary

This discussion clarifies the taxability of capital gains on the sale of listed equity shares traded on the BSE during the financial year 2018-19, where Securities Transaction Tax (STT) was applicable. For long-term capital gains (LTCG), the first £1 lakh is tax-exempt, with gains exceeding this amount taxed at 10%. Short-term capital gains are taxed at a flat rate of 15%. This contrasts with previous years before FY 2018-19, when LTCG on such shares was generally not taxable.

Kiran Hathalia

837 Points Posted on 07 May 2020

LTCG accrued from selling equity shares or equity oriented mutual funds are exempt from tax for maximum upto 1 lac in a financial year. The gain in excess of 1 lac shall be chargeable to tax at a flat rate of 10%.If the capital gains is short term, then it will taxable at 15% irrespective of the slab.

sabyasachi mukherjee

Profession Business

28246 Points Posted on 08 May 2020

These changes have been enacted w.e.f.AY 18 19

Rajib Saha

Accounts Officer

239 Points Posted on 09 May 2020

Thanks a lot to Mr. Mukherjee and Hathalia. Previously, I mean before FY 2018-19, LTCG on sale of Listed Shares subject to STT was not taxable. Am I correct?