I have made a sale of listed equity shares to a friend not routed through a stock exchange without paying STT. Can I pay the long term capital gains tax at a concessional rate of 10% (and not @ 20% as we usually pay while taking the indexation benefit) without availing the indexation benefit if this is beneficial to me?
Note: I have other incomes that exceed the basic exemption limit.
The following are further details:
I have sold 7600 listed equity shares belonging to a public Ltd company @ 68Rs (Cost of acquisition being Rs10 and alloted to me in the year 2005 which converts the shares into long term capital assets) directly to a friend without routing it through a stock exchange in the year 2014 and thereby did not pay the STT. I have a doubt regarding the Capital Gains computation here:
Shld I pay 44080 ie (7600*58)*10% without taking the indexation benefit OR
Shld I pay 72042 (516800-156587)*20% after taking indexation benefit
Thanks,
Vijay
CAclubindia
