LTCG on sale of Shares

Tax planning 386 views 3 replies

Pratosh

Project Manager

85 Points Posted on 13 November 2021

Hello.

I am NRI. I have Shares acquired from open market from 2018- 2021. I sold them sept / oct 2021. After deducting losses incurred nett STCG and LTCG are positive and will be taxed.

1.Can i reinvest full consideration into any type of asset and get setoff including shares ?

2. if not if I purchase a new flat, which will be my second residential property in india. Can I setoff my LTCG by paying in full consideration of sell proceeds for LTCG component of sell?

Request to pls reply

Replies (3)

CA Aakarsh Jain

10436 Points Posted on 13 November 2021

You cannot use your consideration for buying any asset but yes you can buy second residential property for setting off LTCG.

For detail analysis you can contact me on ajaakarshjain16 @ gmail.com

Pratosh

Project Manager

85 Points Posted on 17 November 2021

Dear Aakarshji,

Thank you for your reply. However i had read following recently so was more curious to check if the consideration along with LTCG if invested to equities with 3 year locking will it be allowed ?

https://economictimes.indiatimes.com/markets/stocks/news/ltcg-can-be-set-off-across-assets-tribunal/articleshow/86469245.cms

debora M

BUSINESS DEVELOPMENT MANAGER

1697 Points Posted on 19 November 2021

Long-term capital gains are the profits earned on the sale of listed equity shares. ... The Long-term capital gains (LTCG) over Rs 1 lakh on listed equity shares per financial year is taxable at the rate of 10% without the benefit of indexation.

The long-term capital gains tax will be the difference between the selling price of the asset and the fair market value, which is Rs 50 (Rs 300 – Rs 250). Example 2: You have purchased an equity share on 01 February 2017 at Rs 200. The fair market value as of 31 January 2018 was Rs 150.