Capital gains
riddhi (student) (746 Points)
14 July 2016
How to calculate short term / long term gain on shares? Do we need to consider no. of days?
5 Replies
CA Saurabh Singh
(Practising Chartered )
(974 Points)
Replied 14 July 2016
Hello Riddhi,
For computration of gain or loss on shares, just see their acquisition date and the date of sale the difference should be 12 months above to qualify as long term , yes no. of days shall be considered for computation
CA Srujann kumar Reddy
(Asst Manager(Internal audit))
(1679 Points)
Replied 14 July 2016
agree with saurabh sir but a small correction it is 12 months, however if it is long term capital gain and listed in stock exchange then long term capital gain is exempted under 10(38)
riddhi
(student)
(746 Points)
Replied 14 July 2016
thank you and one more help. can you show me with an example for no. of days calculation for short term capital gain
CA Srujann kumar Reddy
(Asst Manager(Internal audit))
(1679 Points)
Replied 14 July 2016
shares of xyz ltd purchased on 1.5.2016 for Rs.1000 per share, total 100 shares were purchased, on 14th july, 95 shares sold at 110/- per share.
period of holding: 31+30+13: 74 days,
short term capital gain, taxable amount 95*10: 950
period of holding: 31+30+13: 74 days,
short term capital gain, taxable amount 95*10: 950
CA Srujann kumar Reddy
(Asst Manager(Internal audit))
(1679 Points)
Replied 14 July 2016
months is what is important if less than 12 months it is stcg and more than 12 months ltcg, as here 74 days is less than two months stcg will come
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