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Shares purchased before stt regime

Tax queries 234 views 3 replies

Malhar Deshpande

219 Points Joined May 2016

Sir/Madam,
I had purchased shares of some companies listed on BSE/ NSE in 2001. that time STT was not introduced. Shares were purchased through broker who was member of nse/bse. till date I am holding them in demat account. Now if I sell them, I will have LTCG. Will this LTCG will be exempted from long term capital gain tax? this cofusion is because I have not paid stt while purchasing them.This budget ther was some news that LTCG will be exempted only if stt is paid also while purchasing the shares.

I will be grateful if you advise me on this

Replies (3)

Krishna Singh

20 Points Joined January 2017

As per Amendment in section 10(38) of Income tax Act the LTCG is taxable if share of listed company is purchased on or after 1 october 2004 and STT is not paid at the time of purchase.

You had purchased the shares in 2001 so this Amendment is not applicable in your case.