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Stcg and ltcg

Tax queries 357 views 5 replies

Suppose Mr. A purchased 10 shares of listed company back in a past at Rs. 1500/- each. He received 5 shares as bonus in 01.04.2017. He sold total 15 shares at Rs. 1100/- each.

What will be his tax liability (STACG and LTCG)

What planning he can do.?

 

Please share your views.

Replies (5)
period of 12 month will be considered to decide whether LTCG or STCG
BUT i think nothing is required to compute because if share are sold on stock exchange it will be exempt is 10(38).
If not sold on stock exchange then calculation will be done separately for original shares and bonus shares

What if not listed? 

 

What amount will be taxabel under the head STCG and what amount will be taxable under the head LTCG?

 

IS it.

STCG = 5500

LTCG = (4000)

STCG=

(1100*5) - (0*5) = 5500

LTCG

(1100*10) - (1500*10) = (4000)

 

My calculation is correct?

YES MD Mudasaarali you are correct 

Cost of Acquisition of Bonus Share = 0  Period of Holding of Bonus Share = From 01/04/2017 to Date of Transfer 

STCG = 1100*5 - 0 =5500 if unlisted taxable at 30%

LTCG = 1100*10 - 1500*10 = (4000) if unlisted taxable at 20% 

 

thanks a lot Mr. Koushal Jain


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