Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2014 Dear sir,
The six year back my Company director invest the share for another Company Rs, 1774900/-. still as on 07.10.2013 he closed the shares for company . He receive the sum of Rs, 2500000/- for bank credit . He suddenly invest the another company shares purchased For Rs, 2400000/-
I asked the question for its applicable for capital gain in this cases. applied how many tax he paid. & working calculation
Kindly solve the problem .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 December 2014 Had he purchased and sold listed shares through stock exchange for which STT is paid, being a long term capital gain on which no tax is payable.

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CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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28 December 2014 If STT is paid on sale then no tax required to be paid under section 10(38)

However, if STT not paid then capital gain required to be calculate as under
Sale Consideration: 25,00,000/-
Less Indexed cost of acquisition: 32,11,235/- (1774900*939/519)
therefore long term capital gain will be 7,11,235/-
Note Indexation has been made on the basis of 2006-07 rates

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