12 July 2013
Long term capital gains arising on sale of shares is exempt under Sec 10(38) only if the conditions under Sec 111A are satisfied: a. Sale must be thru recognized stock exchange on or after Oct 1, 2004 b. Sale must be subject to payment of STT (Securities Transaction Tax)
Section 112(1) provides that any capital gain arising from a long term capital asset being the listed securities which are sold outside the stock exchange the long term capital gain shall be calculated on such securities as below: a) Tax arrived at @ 20% on such long term capital gain after indexation u/s 48 or b) Tax arrived at @ 10 % on such long term capital gain without indexation Whichever is less.
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