my friend have STCG Rs. 6500/- and Rs. 6000/- from LTCG during the last F.Y.from sale/purchase of Shares including intra day transactions. I think all the transactions through Dmat trading covers STT. what will be the treatment of these gains in ITR.Pls define both gains separately with sections.Thanks
19 July 2009
Long term capital gain on sale of shares and payment of STT is exempt from tax therefore no tax liability will be attrated. Short term capital gain is cover under generanl tax route, not as long term capital gain which have special tax assessment treatment. The benefit of basis exemption will be enjoyed on short term capital gain,
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