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exemption u/s 10(38)

harry (Awaiting ca final results) (461 Points)

02 August 2009

Can exemption u/s 10(38) be claimed on sale of shares of a foreign company which is traded outside India on which securities transaction tax is paid by the assessee?

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7 Replies

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 02 August 2009

Exemption u/s 10(38) is applicable only in respect of STT paid in our country on sale of shares held for more than 1 year

CA CS Amit Borade (Chief Accountant) (2828 Points)
Replied 03 August 2009

In terms of section 10(38) of the Income Tax Act, 1961, any income arising form transfer of Long term capital asset, being an equity shares in a company or unit of equity oriented fund which is chargeable to securities transaction Tax are exempt form Tax.

CA. ANKUR JAIN (CA.....) (2800 Points)
Replied 03 August 2009

agree with mr. aditya maheshwari ji

CA Abhiram Bharat. (Assistant Manager Taxation) (508 Points)
Replied 03 August 2009

ya, i agree with mr. maheshwari.

any gain arising out of sale of capital asset being hold for more than 1 year & on which STT to be paid by exempt form tax by virtue of sec 10(38). not for foreign trading.