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CAPITAL GAIN TAX RATE

Mukund Patel (Student) (477 Points)

23 January 2010

Dear all,

What is new tax rate for Capital gain applicable in P.Y 2009-10.

Regards,

Mukund Patel

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hitesh gupta (audit assistant manager) (38 Points)
Replied 23 January 2010

Tax on Short Term Capital Gains:

Under Section 111A:

Short term capital gains arising on transfer of Equity Share or Units of an Equity Oriented Mutual Fund on satisfaction of the following conditions would be taxable @ 15% from AY 2009-10 onwards

In any Other Case:

The Short term capital gains shall be computed after including same in Total Income and charging Tax as per assessee specific Slab Rates.

Tax on Long Term Capital Gains:

Under Section 112:

Any Long term Capital Gains made by an assessee other than on transfer of listed securities on any recognized stock exchange or units of UTI/ Mutual funds covered u/s 10(23D)/ Zero Coupon Bonds shall be taxed under this section at a flat rate of 20% in case of any assessee. However in case of Long term capital gains u/s 115AB, 115AC, 115AD and 115AE the rate of tax shall be specified @ 10%.

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hitesh gupta (audit assistant manager) (38 Points)
Replied 23 January 2010

In case of transfer of listed securities on any recognized stock exchange or units of UTI/ Mutual funds covered u/s 10(23D)/ Zero Coupon Bonds:

The Long term capital gains shall be computed as minimum of the following:

Tax @ 20% on Long term capital gains computed after indexation of cost of such shares, securities or units;

Tax @ 10% on Long term capital gains computed without indexation of cost of such shares, securities or units.

Long Term Capital gains in case of transfer of Listed equity shares or units of equity oriented mutual funds on or after October 1st’ 2004 is exempt u/s 10(38).

PLEASE NOTE:

Deductions from Section 80C to 80U shall not be available in case of long term & short term capital gains both.
Listed securities means securities as defined in Sec 2(h) of The Securities Contracts (Regulation) Act’ 1956 and listed in any recognized stock exchange in India.