Exemption u/s 10(38) and reflection in return

Hello,

As I understand if I have some shares in BSE/NSE for more than 12 months and I sell them the income is long term capital gains and is exempt from income tax u/s 10(38).

Is my understanding correct ?

In either case how do I show the income and exemption when I file my return ? I normally file ITR1 SAHAJ. Will I be able to file in same form or something else ?

Regards

Kunal Ray

Replies (4)
Dear Kunal, yes according to 10(38) income is exempt on the capital asset is either an equity share in company or a unit of an equity oriented fund. ( and STT is paid on it and should hold it as a capital asset) while filling your return the exempt income should be shown in EI schedule so I recommend you to go for itr2. There I think they have this schdl for exempt income. I hope this ans is satisfactory to you.
Dear Manoj, Thanks for your prompt and precise reply. Regards Kunal
Dear Manoj, As per your advice I checked up the ITR 2 Form. There under the LTCG there is no mention of deduction u/s 10(38). It only talks about deductions under various subsections of section 54. All of them I found are about residential property or land or agricultural land. Kindly Advice Regards Kunal

Dear Kunal, You don't have to show under LTCG income but show in item no. 3 of Schedule EI in Page 11 of 14 of ITR2 if it is a listed compamy and STT has been paid while selling the shares.

 

 

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