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Long term capital gain tax on bonds

Tax queries 4206 views 3 replies

At what rate, Long term capital gain on sale of SBI bonds is to be calculated?

 

Do we take indexed cost of acquisition since it comes under the definition of listed securities?

 

The 3rd Provisio to sec 48 says that LTCG from transfer of  long term Bonds/debentures  other than capital indexed bonds issued by Govt., the cost of acquisition will not be indexed...

If the cost is not to be indexed then is LTCG to be taxed @ 20%?

 

Replies (3)

Dear Pooja

 

the LTCG will be 10% Without Indexation and 20% With Indexation. You can choose the most beneficial one.

 

YES they are listed securities.

 

If you have any further doubts...please feel free to ask

Thanks Ankit for replying to my query.

I re-read the sections and understood that the 3rd provisio is regarding unlisted securities since Sec 112 speaks about listed securities.

Sir,

I totaly agree with you regarding charge of tax %, but when I enter such figure in java utility provided by income tax web site it goes into the column of 20%.

Please help me out asap.


CCI Pro

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