Long ter capital gains on shares

Tax queries 273 views 6 replies

suresh babu

proprietor

21 Points Joined March 2009

if the LTCG is more than 100000 what is the taxable amt

For eg if LTCG is 110000,

10% tax on 110000 or 10000????

under the new budget proposals

Replies (6)

Prajjwal Kaushik

Finance Professional

6216 Points Joined August 2014

On the whole of the amount. But the gains accrued before 31 Jan to be ignored for taxation purposes.

Harsh Singal

46 Points Joined July 2017

if sale after 31st jan. then cost of share is purchase amount or market value on 31st jan which ever is higher

I think....10% tax on Only "10000".... Because the line said "income tax at the rate of10% shall be calculated on such income exceeding 100000".... So in ur case only 10000 exceeds 100000.... So only 10000 will be taxable at the rate of 10%

Harsh Singal

46 Points Joined July 2017

no the whole amounts is taxable if amounts exceeds rs 100000

Dipesh Jha

PRACTICE

673 Points Joined April 2017

Hows it can be possible..... Plz read section carefully
It state income tax @ 10% shall be calculated on only such nIcome which exceeds 100000... And in our case only 10000 exceeds 1lac.... So how can u say that full 110000 is taxable under 112A.??

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210505 Points Joined July 2016

"The proposed new section 112A provides that where the total income of an assessee, includes any income chargeable under the head “Capital gains”, arising from the transfer of a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust, subject to the conditions specified under the section, the tax payable by the assessee on the capital gains exceeding one lakh rupees shall be calculated at the rate of ten per cent.".... Extracted from Finance bill, 2018