when IAM calculating income from long term capital gain I come accross 3 ways of taxability. they are as follows.
1) long term capital gain exempt u/s 10 (38)
2) long term capital gain which is taxable @ 10% without indexation
3) long term capital gain @ 20% with indexation
can anyone help when the long term capital gain is taxable under each of the above catagories? & what are the conditions to be satisfied for each of the above catagories?
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Long term capital gain
Replies (5)
situation 1 taxable when the transfer is of shares or units as per 10 (38) which is subjected to securities transaction tax for shares transacted thorough recognised stock exchange
situation 2 and 3 is something optional for assessee to decide. He can choose if he wants to avail indexation or not and depending on that tax will be charged at 10 or 20
to get an exemption of capital gain you may invest the capital gain in NHAI OR REC bonds but before 6 month of tranfer as per section 54EE
Option 1 is when u pay STT on your transaction and the period of hoilding exceeds 12 months in case of equity. (Refer Section 112)
When you sell properties or assets or debt securities then 2 and 3 option are applicable...
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