I bought 100 shares of xyz for some amount, two years ago. I purchased another 50 shares of xyz for some amount, 1 week ago. If I now sell 50 shares of xyz today with some profit. Will that be considered LTCG or STCG ? Technically I am selling 50 shares from the 100 shares purchased 2 years ago.
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Capital gains on systematic selling of shares
Replies (6)
Hi , you must be selling shares through your demat A/c and not physically and as per circular issued by the income tax department FIFO method shall be applicable in respect of shares sold through demat a/c .So considering the same the shares sold by you will be considered from the First lot you purchased two years ago , and therefore it will be a clear case of LTCG and thus no tax by virtue of section10(38).
AGREE WITH ABOVE
agree with mr. SHASHANK
Agree with Mr Shasank
| Originally posted by : SHASHANK GOYAL | ||
 |
Hi , you must be selling shares through your demat A/c and not physically and as per circular issued by the income tax department FIFO method shall be applicable in respect of shares sold through demat a/c .So considering the same the shares sold by you will be considered from the First lot you purchased two years ago , and therefore it will be a clear case of LTCG and thus no tax by virtue of section10(38). |
 |
FIFO MATHOD IS APPLICABLE.EXEMPT LTCG SEC 10(38).
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