Long term capital gain

LTCG TO BE CHARGED AT RATE OF 20% FLAT.

As per Section 112 of the Income Tax Act, 1961, Long Term Capital Gains Tax shall be liable to Income Tax flat @ 20% + education cess.

Regards,

Devendra Kulkarni

LTCG will be taxable at a flat rate of 20%.

the assessee can either claim indexation benefit and pay tax @ 20 % or pay tax @ 10 % without indexation benefit if the assessee is an individual or HUF...

20% tax would be payable...

Flat rate of 20% but Basic exemption i.e. Rs.160000/- or as may be will be allowed.

Taxable at 20%

1. As per Section 10(38) of Income Tax Act, 1961 long term capital gains on shares or securities or mutual funds on which Securities Transaction Tax (STT) has been deducted and paid, no tax is payable. STT has been applied on all stock market transactions since October 2004 but does not apply to off-market transactions and company buybacks; therefore, the higher capital gains taxes will apply to such transactions where STT is not paid.
2. In case of other shares and securities, person has an option to either index costs to inflation and pay 20% of indexed gains, or pay 10% of non indexed gains. The indexation rates are released by the I-T department each year.
3. In case of all other long term capital gains, indexation benefit is available and tax rate is 20%.

Long term capital gain has no concern with slab rate. If You have earned long term capital gain then you have to pay 20% tax + Edu. Cess.