Section 10(38)

Tax queries 228 views 3 replies

Dear all,

Can we calculate Indexed cost of acquisition for Long Term Capital gain/Loss exempt u/s 10(38)?

 

 

Thanks

Replies (3)
There is more information needed on this

u need to provide details of when it is sold ?
whether STT is paid on purchase and sale ?


from A.Y 2018-19 onwards , LTCG above 1 lakh is taxable and exemption u/s 10(38) is now abolished

for NRI or foreign companies it's 10% flat rate without indexation

for listed securities it's options for other assessee to take 10% without indexation or 20% with indexation

Sub-clause (5) of clause 31 of the Finance Bill, 2018, provides that the long-term capital gain will be computed without giving effect to the provisions of the second provisos of section 48. Accordingly, it is clarified that the benefit of inflation indexation of the cost of acquisition would not be available for computing long-term capital gains under the new tax regime.

 

Thanx for replies.

My query is for AY 2018-19.

I have sold listed share on which STT is paid. Holding period is more than 6 years.  as per section 10(38) this capital gain will be exempt.

 but how cost of acquisition will be calculated?

can i take Indexed COA?

 

Thanx

 

 


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