Capital Gains Tax on transfer of Preference share

What is the tax treatment for sale of preference shares, incase the transfer is within 12 months (STCG), after 12 months(LTCG)? Is preference share treated like normal equity share for CG tax computaion or like debt fund, where LTCG is taxaed at 20% with indx/10% flat? 

In short I am looking for STCG and LTCG rate applicable to preference share. 

Thanks in advance

Replies (2)

i dont think preference shares are traded or transfered in at par with equity, they have fixed coupan interest rates and can be ranked at par with debentures, no capital gain benefit available.

Pref shares held less than 12 months - STCG.

 

The calculation you have stated applies only to equity shares.

Thus a harmonious construction would mean 20% LTCG and normal rates for STCG.

Takeinto consideration other comments as well.

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