LTCG

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2010 Suppose a private company purchase a listed share from stock market in 2008 for Rs.10 each, & same was sell in 2010 @ 20 each, if the total share was 10000 then what will be the tax, is LTCG is exempt income ? but I see some where a tax on LTCG @ 20% please tell me in breif

Guest

Guest (Expert)

27 May 2010 As per sec 10(38) any income arising from the transfer of a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund where—
(a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and
(b) such transaction is chargeable to securities transaction tax and from recognized stock exchange.

Then it will be exempt from capital gain tax.

10% and 20 % are due to indexation applied on cost of acquisition of securities.