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Ltcg tax - is it applicable in case of loss?

Tax queries 184 views 2 replies

Dear Sir/Madam,

For sake of simplicity consider that I have inherited some shares from my mother, transferred to my name. So I have never spent any money in purchasing them. They were purchased way back in 1998 for example by my mother.

Their value as of 31-Jan-2018 is RS 20000 however I sell them today at the prevailing market rate and it fetches only 18000.

Keeping other expenses like brokerage etc aside there's a loss of 2000 Rs

Now is there any LTCG tax applicable in such a scenario, when the value is lower than what it was on 31-Jan-2018?

Thanks and regards,

Replies (2)
Now is there any LTCG tax applicable in such a scenario, when the value is lower than what it was on 31-Jan-2018?
NO.

Earlier Long term capital gain on sale of equity shares was exempt under section 10(38). Finance act 2018 has withdrawn this section and new section 1112A introduced effective from fy 2018-19.  Now  LTCG exceeding Rs. 1 lac will be taxed @ 10%. from FY 2018-19 onwards subject to other conditions.

CA umesh kumar- 9717597230

 


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