Hi,
Currently the long term capital gains from equity/mutual fund is tax free if the equity/MF is held for over one year.
From next financial year FY2010-2011, do we need to add the long term capital gains to the regular income and need to pay the tax as per the tax slab ?
Please clarify.
Thanks
Josh
Dear Josh,
LTGC (i:e after holding it for over 12 months) on Equity/Equity oriented MF are exempt u/s 10(38) if Sales has suffered Securities Transaction Tax (STT).
Now this STT is charged when Transaction is done on a Stock exchange or what is called as over the counter and not on off market or private selling (say directly between u & me) transactions.
STT in case of Mutual funds is also charged when the units are redeemed to MF like the case of repurchase of units by Mutual Funds.
The above is valid even for FY 2010-11, as no change is proposed in these provisions.
Thanks amir for the detail information.
Regards
Josh
CAclubindia
