Short term capital gains tax

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Hello friends

One  query please.

Say , I purchased 100 qty of shares at rate Rs. 100 / share. (  In addition to this there is Brokerage = 40 , service tax of say Rs. 20 and STT = 40 ------ Total other charges = 100 ) .

Total Value of transaction is Rs. 100 x 100 = 10000 /- + 100 = 10100.

I sell all the shares within one year at the rate of Rs. 200 per share. (  In addition to this there is Brokerage = 80 , service tax of say Rs. 40 and STT = Rs.80 ---------- Total other charges = 200 ) .

Total Value of transaction is Rs. 200 x 100 = 20000 /- + 200 = 20200.

Please help in calculating the capital gains tax. ( Please ignore Transaction charges , stamp duty etc )

Regards

Kiran

Replies (2)

Hello Kiran,

Well the difference between purchase consideration and sale consideration is the amount of capital gain you earn. As you had sold the shares within one year so you had Stcg of Rs.9700 (transfer expenses will be reduced from your net sale consideration i.e 20000-200 = 19800) and this amount will be taxed to you as per the slab rate in which your other income incurs.

It will be taxed to you at 15%, if STT is paid.

Thanking You

Hello 

In case capital gain all other expenses are allowed but STT are not allowed to be dedected from sale consideration or added to purchase cost .... It need to be treated as capital expenditure only

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