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Capital gain/loss in equity

Bhavesh (Accounts) (899 Points)

11 March 2012

How the Following is treated as per Income Tax Rules

1.) Long Term Capital Gain in Equity

2.) Short Term Capital Gain in Equity

3.) Long Term Capital Loss in Equity

4.) Short Term Capital Loss in Equity.

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4 Replies

anveshgupta (Student) (94 Points)
Replied 11 March 2012

long term gain in equity is not taxable,where as long term capital loss cant b c/fd .short term capital is taxable at rate u/s 111A WHERE AS SHORT term CAPITAL loss can b set of against on long term gain/short term gain

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praveen (Chartered Accountant) (6971 Points)
Replied 11 March 2012

Just to add to the above comment

Long term capital gains on equity shares listed in stock exchage is only exempt from tax. LTCG on other shares are taxable.

Rakesh Gupta (Vice President Finance) (92 Points)
Replied 12 March 2012

Dear Bhavesh

1.) Long Term Capital Gain in Equity:

If STT (Securities Trx. Tax) has been paid on their sale-Exempt from Tax Sec 10(38)

otherwise they are taxable @ 10% (without Indexation) / @ 20% (with Indexation)

2.) Short Term Capital Gain in Equity:

If STT is paid @ 15%+Edu Cess+HE Cess Sec 111A

If STT is not paid then as per the normal slab / flat rate applicable to assessee

3.) Long Term Capital Loss in Equity

If STT is paid on sale LTCL shall not be allowed to be set off against other LTCG income

If STT is not paid then LTCL can be adjusted against other LTCG and can also be c/f for 8 successive AY's for adjustment against LTCGs of those years.

4.) Short Term Capital Loss in Equity.

STCL can be adjusted against other Capital Gains (both Short Term and Long Term) and can also be c/f to next AY and adjusted against Capital Gains for that AY. This C/f is allowed upto 8 successive AY.

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