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

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.