Capital gain tax

. I had reinvested the capital gain (both short term and long term) in shares of listed companies. Clarify whether such gains are taxable (already paid STT). Further, I had filed my IT return for the financial years 2011-12 & 2012-13 using ITR-1 by including all my capital gain (both short and long term) under other income. Now I learnt that   ITR-2 is required for filing  IT return. What can I do for rectification?

Replies (4)

STCG will be taxable @ 15.45%(inlcuding EC).

FOr LTCG, as per sec 54EC, any long term capital asset in the nature and held for the following period: 

1 year for shares, listed securities, units of UTI, Mutual fund specified u/s 10(23D)

3 years for any other Capital asset

reinvested into the specified assets as stipulated in the section within 6 months of the transfer of capital asset, Following exemption would be granted: LOWER OF CAPITAL GAIN or INVESTMENT MADE subject to Rs 50 Lakhs. Also the new asset should be held for 3 years. 

For further details refer to the following link:

https://wirc-icai.org/wirc_referencer/Income%20Tax%20&%20Wealth%20Tax/Income%20From%20Capital%20Gains.htm

with regard to the return, i guess a revised return u/s 139(5) is sufficient

Long term gain on shares where STT is paid and its thru recognized stack Exchange is exempt from LTCG Tax,

Short term Capital gain on shares is liable for tax @ 15.45 percent.

However, Short term gain can not be exempted in any section, you have to pay tax for it...

Hey Pallav,  would the LTCG provisions of exemption be applicable in the event of reinvesting the amount back. would section 54 not be attracted?

If  such amount Invested in Residential Property {54F} or in NHAI or RECL bonds {54EC}.

Only then exemption can be claimed.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details