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Long Term Capital Gains Tax on shares

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sfunds.2014

retired

70 Points Posted on 29 March 2021

Hi ,

I sold 400 shares Ril for Rs1480 in May 2020.

I was holding this shares for more then a decade.

I have not invested in shares after this sale.

My question are

1)how to compile LTCG for this sale

My annual income is 2 Lakhs only (including dividend interest etc. I am 60 and retired

Do I need to invest 1 Lakh in shares to claim exemption allowed in LTCG pl help

Thanking you Sridhar

Replies (2)

Quick Summary

This discussion addresses Long Term Capital Gains (LTCG) tax on shares sold after holding them for over a decade. The user, a retired individual with an annual income of Rs. 2 lakhs, is seeking clarification on calculating LTCG and potential exemptions. While one response initially suggests no exemption is available under Section 54 (typically for property sales), another points to a Rs. 1 lakh exemption for LTCG accrued post-April 1, 2018, with gains above this threshold taxed at 10% for individuals.

8156046685

CA FINAL STUDENT

36 Points Posted on 30 March 2021

You shall not be allowed exemption under sections 54 of the act because exemptions shall be allowed only for investing amount out of sale of residential property or agricultural land etc.

sfunds.2014

retired

70 Points Posted on 30 March 2021

Are you sure.

As per this article

https://www.financeminutes.com/ltcg-calculation-31st-jan-2018-share-price-list-tips-all-

need-know/

For all the long term capital gains accrued post 01.04.2018, taxpayers will have an exemption of Rs. 1,00,000. This exemption is only available to the individual taxpayers and not the corporate or partnership firms. Gains above Rs. 1,00,000 will be taxed at the reduced rate of 10% irrespective of the balance income of the taxpayer in the respective year.

need-know/