Regarding long term capital gain.

This query is : Resolved

CA Nimesh Khandelwal (Querist)
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29 March 2011 Dear sir,

I have some shares of companies which i have received on allotment by company and held for more than 12 months and now i sell those shares please tell me how to calculate the long term capital gain.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 March 2011 If selling in market and paying STT on sale then no tax on gain as same exempt u/s 10(38).

If selling shares of unlisted companies then calculate indexed cost of acquisition and the difference between sales price - indexed cost is gain taxable @ 20%

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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29 March 2011 if STT is paid then there is no question of taxability of capital gain else following calucualations are warranted

20 % on the amount arrived at with indexing

or

10 % of the amount arrived at without indexing whichever is more beneficial to the assessee is concerned

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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30 March 2011 the 10% option without indexation option is only in case of listed shares and not unlisted shares.