Query related to capital gain

Ankit ji,

Yes this is possible…

Let me explain you with an example:

Mr.X  purchased 50 shares of ABC Ltd. at 45/- each on 30.11.2009 and 70 shares on 06.08.2011 at 85/- each.

He  sold all the shares (120 Shares) of ABC Ltd, at 100/- each on 14.12.2011 (STT not paid). Now while calculating CG**   on 120 Shares gain on 50 shares will be long term & gain on 70 shares will be short term.

**  In case of shares holding period for more than 12 months is considered as Long term & period of 12 months or less than 12 months is considered as short term.

Mr Srivastava, Do you want to say that if 400 shares of ABC co are purchased on a particular date then will LTCG & STCG will be applicable on those 400 shares if all of them are sold on the same date.

 I don’t think that the answer given by Mr Waghela is in line with the question asked by MR Srivastava if the above question asked by me is correct.

Mr. Karandikar, yes sir my question is exactly you interpreted. 

Sir, Can you please help me out in this?
 

if this is teh case, then there will only be either short term capital gain or long term capital gain.  There cannot be 2 possibilities at the same time.

For instance if you incur an expense, then it is your expense only,  it cannot be your income & expense at the same time.  Same way for LTCG & STCG.  However if tehre is an LTCG & you have paid STT on it then it shall be exempt u/s 10(34).

Hope the above would clear your doubt.

Ankit ji, I misunderstood your question.

Giridharji is correct,

As said by them you can not have LTCG & STCG on the same security purchased on the same date. This is not possible.

I agree with above reply. However, there may be a theoretical situation, which can have both the views depending on how you intereprete same security. Say a company has issued two types of debentures, viz. secured and unsecured. Secured debentures are listed and unsecured debentures are not listed. Both of them are purchased and sold on the same day. The period of holding is 15 months. In such a case, CG on sale of secured debentures will be LTCG, whereas, CG on sale of unsecured debentures will be STCG. Please suggest the corrections in this view, if any.

In case of shares LTCG and STCG both is not possible. Either it can be LTCG or STCG. LTCG on shares will be exempt u/s 10(38) if shares are purchased after 1st March,2004, but if shares are purchased between 1st March, 2003 to 1st March, 2004 then LTCG will be exempt u/s 10(36).

This situation of LTCG and STCG simultaneously is possible theoretically, as rightly explained by Ameya. In any other case it's not possible.

In case of shares LTCG and STCG both is not possible. Either it can be LTCG or STCG. LTCG on shares will be exempt u/s 10(38) if shares are purchased after 1st March,2004, but if shares are purchased between 1st March, 2003 to 1st March, 2004 then LTCG will be exempt u/s 10(36).

This situation of LTCG and STCG simultaneously is possible theoretically, as rightly explained by Ameya. In any other case it's not possible.