Capital gain or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2011 A INDIVIDUAL ASSESSEE PURCHASED NON LISTED SHARES OF A FOREIGN COMPANY 5 YRS BACK AND ON 15.12.2010, HE SOLD THE SHARES ON PROFIT OF RS. 25000/
WHTHER HE HAS TO PAY TAX AND IF YES HOW MUCH AND WHICH HEAD OF INCOME
KINDLY HELP ME OUT.

Darshit Joshi

Darshit Joshi (Expert)
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14 December 2011 A share is a capital asset and any gain arising on transfer of capital asset is a capital gain As period of holding is more than 12 month it will be LTCG. As the share are not sold through stock exchange STT must not be paid therefore exemption under sec 10(38) is not available. Hence it will be taxable as LTCG @ 20%.

Guest

Guest (Expert)

14 December 2011 Taxable @ 20% when indexation benefit is taken or @ 10% when indexation is not done.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2011 ONE OF MY FRIEND TOLD ME THAT IT IS NOT COME UNDER THE HEAD C G BUT NORMAL PROVISION WILL APPLY AND YOU HAVE TO PAY AS PER THE NORMAL PROVISION OF THE I T ACT