LONG TERM CAPITAL GAIN ON SALE OF SHARES AND SECURITIES

My client currently residing at UAE, having income from capital gain on sale of share and securities for the financial year 2024-25 relating to the assessment year 2025-26 Rs. 224348/-

So, what is the Tax structure? Pl advise

 

Replies (3)
Quick Summary
This discussion addresses the tax implications for a client residing in the UAE (a non-resident for Indian tax purposes) who has realised capital gains from selling shares and securities. It clarifies that for listed equity shares held long-term, gains exceeding ₹1 lakh are taxed at 10% under Section 112A, while short-term gains are taxed at 20% under Section 111A. The query also explores the applicability of the basic exemption limit for NRIs whose total income is below ₹2.5 lakh.

Poinr 1. 

Short term taxable from Union budeget 2024 increased to 20%

Long term  

Paying of securitirs transaction tax is mandatory.

Sec 112Aa is applicable.

LTCG IN EXCESS OF 100000 TAXED AT 12.5 %

BUT EXEMPT IN THE FOLLIWING CAEES IF INVESTED IN HOUSE PROPERTY NEW, EXTENSION.

As he is residing at Dubai - He may be a non-resident for IT purpose.

Then if gains from sale of shares arises from shares of Indian companies, then it will depend whether it is listed or unlisted shares if listed shares then tax will be 12.5% u/s 112A for Long Term capital gains above Rs. 1,25,000 (i.e held for more than 12months) and 20% u/s 111A for Short term capital gains (i.e less than 12m)

In case of unlisted shares 12.5% for LTCG and at applicable slab rates for STCG.

 

So for taxation it is important that your client is whether resident or non resident.

Whether shares are listed or unlisted or whether it is Equity or debt securities 

All securities are listed and the assessee is NRI but the Total income for the year is below the exemption limit i.e. below Rs 2,50,000/-. So he is entitle to get the benifit of basic exemption limit and no tax payable on such income or taxable like as Short term capital gain without taking bais exemption limit?

 

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