LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Tax on sale of shares

prakrut (accountant) (120 Points)

03 January 2013

Is tax on long term capital gain applicable ? if i sale share with long term profit is tax on same applicable ?

Reply
Follow
Share

2 Replies

Abhimanyu Bind (CA Final Student & Audit Assitant) (2049 Points)
Replied 03 January 2013

If shares have been sold after holding 12 months through a recognized stock exchange then No Long Term Capital Gain Tax is applicable. i.e. TAX FREE.

Regards,

Abhi

CA DIGANT CHADHA (Academician & Consultant) (195 Points)
Replied 03 January 2013

IT IS LONG TERM CAPITAL GAIN U\S 10(38) WHICH IS EXEMPT FROM TAX. SIMILARLY IF YOU ARE HAVING LOSS IN THESE SHARES THEN IF YOU SELL THEM FROM RECOGNISED STOCK EXCHANGE, YOU WONT BE ABLE TO SET OFF THE LOSS. TAX PLANNING FOR THIS CASE IS THAT YOU SELL THESE SHARES OFF MARKET.