10 March 2017
I Purchase ONGC 1000 Shares @399/-total value Rs.402010/- on 17.10.2014 & Now ONGC issue Bonus Shares 1:2 Ratio. After the bonus issue Total Shares with me 1500 Qty and sales on 20.1.17-1500 Qty. Than How to Count Long Term Capital Gain & Short Term Capital Gain on sales of shares.
14 March 2017
First of all, ONGC is a listed company and on sale or purchase on shares of listed companies security transaction tax is levied. Taxability of shares/securities on which security transaction tax is levied are as under :-
Long term Capital Gains - Expemt under section 10(38) Short term Capital Gains - Taxable @ 15% as per section111A
Original Shares : Period of holding of original shares is considered as long term because shares are held for more than one year (17.10.2014-31.03.2017) and there will be long term capital gains which are exempt.
Bonus Shares : If bonus shares are allotted after 21st January 2016, there will be short term capital gains taxable @ 15%
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