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Capital gain

Pradeep (Student) (150 Points)

13 March 2012

Dear Experts & Friends,

while calculating tax on income, why should we have to caluclate tax on capital gain seperately & what is the exact meaning of slump sale under this head of income. what is the % of Short & Long Term Capital Gain.

kindly reply as soon as possible

Thank You one & All

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3 Replies

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 15 March 2012

15% for STCG and 20% for LTCG

In case of shares, LTCG is exempted.

It's because you transfer a capital asset, which results in Capital Gains. It is a separate head of income, so computed separately.

Slump Sale is complete transfer for any business or part of an undertaking for a lumpsum consideration. All the assets & Liabilities are transferred for a consideration without separate valuation.

Regards

Prateek

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Sonam Bidasaria (CA) (770 Points)
Replied 16 March 2012

Special rates are applicable to STCG and LTCG only in the following cases :

1. 15% on STCG - If on sale of capital assets, STT was levied..Eg . sale of shares through recognised stock exchange, Sale of Equity Oriented Mutual Fund

2. 20% on LTCG - On every LTCG ,other than covered exempted under SEc 10(38), 20% tax is levied.

That means, if an assessee has acquired a house property on 1.10.2011 and sold it on 1.01.2012, then it will be charged at normal rates.

Normal rates in case of individual means slab rates and company 30% or in case of other assessees as the case may be.

Resham (Carpe Diem !!!) (6535 Points)
Replied 16 March 2012

I think that LTCG and STCG is calculated seperately coz the rates of taxes applicable to it are different and fixed whereas other normal income is taxed at slab rates(in case of individuals ) and at 30% for corporates(no change in Corporate tax in budget)