vivek (sm) (31 Points)
20 July 2014Dear sir,
i have made purchase of certain share in SEPT'2011 and sold it in july'2013 by booking profit.The transaction was through on-line demat account.i am a salaried individual working with a PSU.whether any long term capital gain tax has to be paid during filing it return
If the same is exempted for income tax where to show it in income tax return ITR-1 OR ITR-2 and under which section?
Bhavesh A. Manani
(CA Final )
(35 Points)
Replied 21 July 2014
1).when shares are held more than 12months & sold through recognised stock exchange and security transaction tax (STT) levied on such transaction then u/s 10 (38) it is exempt from tax.
2).10(38) exemption means that 1st you have to diclose entire transcation in your return and also LTCG made out of transction then exemption can be claimed in aforesaid section.
3). Broker E- contract notes issued to you of:
a). Purchase of Share
b). Sale of Share
should be kept because ITO If requied , may demand from you.
4). ITR-2 should be filed .
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 21 July 2014
In your case you have earned the LTCG. this LTCG is exempt under section 10(38). so no need to pay the tax but you have to mention this in ITR 2.
Tarun
(engineer)
(39 Points)
Replied 21 July 2014
SIr I also have the same querry.
BUt one more thing i would like to add is that suppose if i purchase some share in 2011 and sold them in fy2013-2014 with loss .Then what is the tax implication and do i have to show that thing while filling return.If yes under what head.
Rishabh Hada
(student)
(21 Points)
Replied 22 July 2014
Harshil
(student)
(65 Points)
Replied 22 July 2014
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