LONG TERM CAPITAL GAIN ON SALE OF SHARES AND SECURITIES

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?

• Residency & Slabs: The client is an NRI (residing in the UAE), meaning Indian tax rules for non-residents apply.

• Basic Exemption Limit Restriction: NRIs cannot use the unexhausted basic exemption limit (e.g., ₹2.5 lakh) to shelter special-rate capital gains. Tax applies directly to the taxable portion.

• Applicable Rates for FY 2024–25: Listed equity LTCG is taxed at 12.5% for amounts exceeding the ₹1.25 lakh threshold (post-Union Budget 2024 changes).