Hi Members,
I sold some shares in the FY 2009-2010 which were held for long term (4+ years). Since I already paid STT at the time of selling, I understand that I need not pay tax on the capital gain due to the dealing.
I also understand that the capital gains should be mentioned in Schedule EI of ITR-2.
My question is on the calculation methodology for capital gain in case STT is paid.
(a) Should I use simple formula i.e Selling price - Cost price OR
(b) Should I take in to consideration "Indexed Purchase Price" while calculating the same (i.e Selling price - Indexed purchased price).
Indexed purchased price = Purchase Price * (CPI for current year / CPI for year of purchase)
Regards,
Gaurav
CAclubindia
