CA.kaya
(Chartered accountant)
(3990 Points)
Replied 25 May 2012
agree with ganeshan sir... i would like to add some more points.
Section 112(1) provides that any capital gain arising from a long term capital asset being the listed securities which are sold outside the stock exchange the long term capital gain shall be calculated on such securities as below:
a) Tax arrived at @ 20% on such long term capital gain after indexation u/s 48 or
b) Tax arrived at @ 10 % on such long term capital gain without indexation
Whichever is less.
The long term capital gain on equity shares or units of equity oriented mutual fund which are sold in the stock exchange and on which securities transaction tax is paid, is exempt u/s 10(38).
Karthikeya2020
(Student)
(2030 Points)
Replied 25 May 2012
Exactly correct said by Ganeshan and Kaya..
I agree with both them..
Sheena Maheshwari
(ARTICLESHIP)
(240 Points)
Replied 25 May 2012
indexation does not apply on foll.:
longterm capital gain
slump sale
sale of debentures
sale of depreciable assets
sale of securities by non resident that were purchased in forex
C.A SUVAJIT SAHU
(CA ( In Practice ))
(708 Points)
Replied 25 May 2012
| Originally posted by : sheena | ||
 |
indexation does not apply on foll.: longterm capital gain slump sale sale of debentures sale of depreciable assets sale of securities by non resident that were purchased in forex |
 |
akash gupta
(article)
(127 Points)
Replied 26 May 2012
| Originally posted by : sheena | ||
|
|
indexation does not apply on foll.: longterm capital gain slump sale sale of debentures sale of depreciable assets sale of securities by non resident that were purchased in forex |
|
confused... as per other replies, indexed cost allowed for long term capital gain.., is it applies to only specific longterm gains??
C.A SUVAJIT SAHU
(CA ( In Practice ))
(708 Points)
Replied 26 May 2012
hi harini......
benefit of indexation is available only on "LTCG".........which is determined by calculating period of holding.......
but in the follwing cases benefit of indexation is not available even if period of holding shows that the capital gain is of long term nature......
slump sale
sale of debentures or bonds issued by a company or government.
sale of depreciable assets where capital gain is determine u/s 50 ie capital gain / loss is always a STCG / STCL.
sale of securities by non resident that were purchased in forex ie FIRST PROVISIO to section 48.
C.A SUVAJIT SAHU
(CA ( In Practice ))
(708 Points)
Replied 26 May 2012
You're welcome "harini"...............
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