Clarification on ltcg

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tsm2813

Retired

33 Points Joined July 2012

I have some catipal Gains from selling stocks listed in stock market with STT paid on them. As I had held the stcoks for more than 3 years, these fall under LTCG.

I was under the impression that these LTCG are exempt from tax.

But I read in some website that for LTCG the following things apply:

LTCG in case of ‘Asset in the case of others where proviso under section 112(1) not exercised’ where benefit of indexation is allowed is ‘21’ and the tax rate is 20%.
LTCG in case of ‘Asset in the case of others where proviso under section 112(1) is exercised’ where the benefit of indexation is NOT allowed is ‘22’ and the tax rate is 10%.

Which of this is correct?

Replies (3)

Pawan Mittal

CA Final

711 Points Joined July 2012

Dear tsm2813,

You need not worry. What u have read is true but long term capital gain on listed securities on which "Securities Transaction Tax" has been paid are exempt under section 10(38).

So you need not pay any tax on capital gain. Moreover, in case of shares and debentures if holding period is more than 12 months than they will be termed as long term capital gain.

CA Pk jain

33 Points Joined July 2010

I too completely agree Mr. Mittal.

i.e in ur case its exempt u/s 10 (38)

So in that case when I am filling the excel sheet ( provided at https://incometaxindiaefiling.gov.in/portal/downloads.do.) I need to enter them only in "EI" sheet and not in "CG-OS" Sheet - Am I right?

I needed another clarification. I have Short term Capital loss of about Rs 26000 in current Assessment year. Can I set off aganist other income?