Mura (aSss) (36 Points)
17 September 2013. 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?
Poonam Somani
(CA Job)
(39 Points)
Replied 17 September 2013
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:
with regard to the return, i guess a revised return u/s 139(5) is sufficient
CA Pallav Singhania
(IT System Auditor)
(33262 Points)
Replied 17 September 2013
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...
Poonam Somani
(CA Job)
(39 Points)
Replied 17 September 2013
Hey Pallav, would the LTCG provisions of exemption be applicable in the event of reinvesting the amount back. would section 54 not be attracted?
CA Pallav Singhania
(IT System Auditor)
(33262 Points)
Replied 17 September 2013
If such amount Invested in Residential Property {54F} or in NHAI or RECL bonds {54EC}.
Only then exemption can be claimed.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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