long term capital gain from sale of shares and units

Long Term Capital Gain means transaction after one year it is exempt in Income Tax Act. In this reagrds there is new circular in INcome tax department that while scruitnize A.O. go through transaction quantity, motive, value and frequency. If he is not satisfy than he can treat it as Trading transaction. Which mean it will be taxable as business income so there will be no exemption

thanx

if ur sales proceeds exceeds the cost of your shares or as the case may be units then there will be capital gain....now we have to decide whether it is short term or long term....If the shares or units are held for a period exceeding one year then it is a long term capital gain and sale of such shares or units does not attract LTCG.....for eg if u hv purchased 100 shares of ITC @ Rs. 200 on 1st Jan 08 and sold them for 400 on 3rd Jan 08 then your entire capital gain of Rs. 20000 (40000-20000) will be exempt from capital gain tax......

LONG TERM CAPITAL GAIN ON SELLING OF SHARES EXMPT FROM TAX