Ltcg

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Curious (Querist)

26 August 2012 We paid 10% advance tax on LTCG (without indexation) that accrued on off market buy back of our shares by a company on

delisting. We filed an IT e-return (ITR2_2012_13_R2) and entered LTCG on Capital Gains worksheet page under:

Other assests to which option under proviso to section 112(1) exercised

The IT e-return did automatic calculations and reduced our overall tax liability to much less than this 10% amount. We do not

understand why? Has this to do with the tax slab? But how can LTCG get merged with the income under tax slab? Please advise.

Thank you.

Praveen Kumar Rathi

Praveen Kumar Rathi (Expert)

28 August 2012 Relief under Tax slab is always available whether u take it or not.

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Curious

Curious (Querist)

28 August 2012 We appreciate. Thank you Shri. Praveen Kumar Rathi.

Just a question. What if this buy back gain had been short term? Where would it appear in the tax return - under Schedule CG A(Short Term Capital Gains) or under Schedule OS Income 1d(Others, Gross (excluding income from owning race horses))?

Pl advise.

Thank you.

Praveen Kumar Rathi

Praveen Kumar Rathi (Expert)

29 August 2012 Defiantly in STCG.

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Curious

Curious (Querist)

29 August 2012 Thank you.

And where will LTCG on Gold or Debt fund appear? Will it be under:

Schedule CG B 3 Other assets to which option under proviso to sec 112(1) exercised

Praveen Kumar Rathi

Praveen Kumar Rathi (Expert)

29 August 2012 if it is gold or debt fund then holding it for more than one year would require you to pay LTCG which would be 10 % of gain without indexation or 20 % of gain with indexation.

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Curious

Curious (Querist)

29 August 2012 Thanks.

Is advance tax payable on Short Term Capital Gains that accrues on delisting buy back by a company? If yes, at what rate?

Pl advise.

Thank you.