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Long term capital gain

SANJAY MAHESHWARI ACA ACS (Chartered Accountant) (123 Points)

08 June 2012

If an assessee covers under taxable slab of 10% and has LTGC chargeable @ 20% than, at what rate LTCG shall be taxable i.e. either @ 10% or 20%??

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10 Replies

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LTCG TO BE CHARGED AT RATE OF 20% FLAT.

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Deepak Parsai (Future CA) (623 Points)
Replied 08 June 2012

LTCG TAX HAS NO RELEVENCE WITh normal slab. It is taxable @ 20% flat rate subject to sec. 112

Devendra (Chartered Accountant) (4775 Points)
Replied 08 June 2012

As per Section 112 of the Income Tax Act, 1961, Long Term Capital Gains Tax shall be liable to Income Tax flat @ 20% + education cess.

Regards,

Devendra Kulkarni

Yogesh Kumar (Job) (180 Points)
Replied 08 June 2012

LTCG will be taxable at a flat rate of 20%.

CA ROSHAN TIWARI (salaried) (302 Points)
Replied 08 June 2012

the assessee can either claim indexation benefit and pay tax @ 20 % or pay tax @ 10 % without indexation benefit if the assessee is an individual or HUF...

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Neha sharma (-) (1257 Points)
Replied 09 June 2012

20% tax would be payable...

CA PRAMESH AGARWAL (Profession) (152 Points)
Replied 09 June 2012

Flat rate of 20% but Basic exemption i.e. Rs.160000/- or as may be will be allowed.

NITIN (.) (96 Points)
Replied 09 June 2012

Taxable at 20%

Rushikumar Khandelwal (CA Final Student*) (33 Points)
Replied 09 June 2012

As per Section 10(38) of Income Tax Act, 1961 long term capital gains on shares or securities or mutual funds on which Securities Transaction Tax (STT) has been deducted and paid, no tax is payable. STT has been applied on all stock market transactions since October 2004 but does not apply to off-market transactions and company buybacks; therefore, the higher capital gains taxes will apply to such transactions where STT is not paid.
In case of other shares and securities, person has an option to either index costs to inflation and pay 20% of indexed gains, or pay 10% of non indexed gains. The indexation rates are released by the I-T department each year.
In case of all other long term capital gains, indexation benefit is available and tax rate is 20%.