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Indexation on LTCG of listed securities

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Ram

Engineer

98 Points Posted on 21 February 2023

For the FY 2022-23, I have a huge LTCG through liquidation sale of all my listed securities (12 companies' shares). I want to reduce the LTCG tax to the maximum extent possible. With this aim, I have the following questions:

Can I apply Indexation for reducing LTCG tax – the shares are purchased on different dates ranging from 27 September 2018 to 3 March 2021 and sold on different dates ranging from 26 August 2022 to 12 January 2023?
Can I apply indexation, partially, for some of the securities sold and the rest without indexation to avail of the Rupees One Lakh deduction on the LTCG on the latter set of securities - meaning a optimized combination of both?

I kindly request your expert opinion.

Regards.

Replies (3)

Quick Summary

This discussion explores the application of indexation benefits for calculating Long Term Capital Gains (LTCG) tax on the sale of listed securities. The original poster seeks to understand if indexation can be applied to shares purchased between 2018 and 2021 and sold in 2022-23 to minimise tax liability. It also questions the possibility of a hybrid approach, using indexation for some sales while opting out for others to utilise the ₹1 lakh LTCG deduction.