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Suboohi Hyderi (Article Assistant)     22 July 2010


Hey friends, I have one query regarding the taxability of Notional Capital gains/losses.................

can anyone tell me about its taxability arising on shares & securities.........

 13 Replies

CA Adarsh

CA Adarsh (Job)     22 July 2010

What u mean by Notional Capital Gain ?

If the Shares are transferred which is kept for more than 12 months & STT paid on the transaction, then LTCG will be Exempt. If sold upto 12 month then STCG will be taxed @ 15 %.


Harpreet (* * * * * *)     22 July 2010

agreed with adrash.


OldSchool (None)     22 July 2010


Since your gains are notional, you can pay notional tax.

1 Like


lolzz..funny Mr/Ms Old school


MOHAMMAD (Statutory Auditor)     23 July 2010

Ya Mr Adarsh Is Absolutely Correct As Per section 10 Clause (38) It Is Exempt If STT Is paid and is LTCG

But If Its STCG than 15%


OldSchool (None)     23 July 2010

mohammad, he is asking about NOTIONAL, which means they are just in brain. He has not realised any profits. SO no tax payable.


Are u referring to Deep Discount Bonds?? But that is again Actual gain in Market value.

 Income on DDB = Valuation as on last day of FY (31ST March 2010) - Valuation as on last day of previous FY (31ST March 2009)

This Income is chargeable as Interest Income in case the asset is held as investment and as Business Income if its held as a current asset

 Somshekar (Rankholder)

Somshekar (Rankholder) (-)     23 July 2010

no tax on notional capital gain

Originally posted by : CA Somshekar (Rankholder)

no tax on notional capital gain

RADHIKA JALAN (agarwal)     23 July 2010

agree with adarsh.

Jay Shah

Jay Shah (Article)     23 July 2010

its very subjective case..  there is no notional gain or loss unless there is a specific provision for the same.. as the e.g. given by ravati, STCG will arise but in other cases it will not arise E.g conversion of shares into stock in trade, in that case there is no capital gain

Originally posted by : RADHIKA JALAN

agree with adarsh.

fir mastan ka kya hoga re....


sushil (self employed)     30 March 2018


how to report notional gain /loss in itr

1:since stocks held on year end would be not come under intraday

2: neither we can record them under stcg/ltcg

3: where to add purchase volume



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