Helo Frnds,
Please tell me whether LTCG on sale of Debentures is exempt from tax or not?
If it is exempt then please help me with the section for the same.
Regards,
Vishal.
Vishal (CA Final.) (77 Points)
09 December 2010Helo Frnds,
Please tell me whether LTCG on sale of Debentures is exempt from tax or not?
If it is exempt then please help me with the section for the same.
Regards,
Vishal.
CA Sahil Singla..
(Service Tax )
(3746 Points)
Replied 09 December 2010
it's not exempted...fully taxable
CA Tarkeshwar
(job)
(77 Points)
Replied 09 December 2010
dear friend
LTCG is exempt U/s 10(38) of the Income tax act 1961 subject to the following condition
1. The capital assets must be equity shares or units of equity oriented mutual fund
2. transfer of said capital assets must be charged to STT
Hence the LTCG on sale of Debentures is not exempt from tax. It is taxable at special rate of 20 percent
Originally posted by : tarkeshwar | ||
dear friend LTCG is exempt U/s 10(38) of the Income tax act 1961 subject to the following condition 1. The capital assets must be equity shares or units of equity oriented mutual fund 2. transfer of said capital assets must be charged to STT Hence the LTCG on sale of Debentures is not exempt from tax. It is taxable at special rate of 20 percent |
agreed
it is taxable
tanuj sharma
(CA-PCC)
(47 Points)
Replied 09 December 2010
Sir According to sec.10(38) Long term cap. gain is exempt only for Listed Securities not for debentures and bonds
however there is a provision for debentures and bonds that assessee shall dep. tax @ 10% without indexation or 20% with indexation it is depend on the assessee to choose the option
CA Sahil Singla..
(Service Tax )
(3746 Points)
Replied 09 December 2010
fully agreed with tanuj sharma
swapnil
(CA Final)
(598 Points)
Replied 09 December 2010
yes i aggree with tarkeshwar,
but i added 1 point is, when we have an LTCG on sales of debenture, that time the cost of debenture, not applicable d Indexation criteria,
keep sharing,
C.A. Jignesh N. Mehta
(C.A.)
(1030 Points)
Replied 10 December 2010
As far as the provisions of the Income Tax Act are concerned , no indexing benefit is available on debentures and bonds, hence they are fully taxable @ 20% special rate.
CA Deepesh Ruhela
(Keen to Learn)
(3271 Points)
Replied 11 December 2010
Originally posted by : tarkeshwar | ||
dear friend LTCG is exempt U/s 10(38) of the Income tax act 1961 subject to the following condition 1. The capital assets must be equity shares or units of equity oriented mutual fund 2. transfer of said capital assets must be charged to STT Hence the LTCG on sale of Debentures is not exempt from tax. It is taxable at special rate of 20 percen |
agree with Jignesh...no indexation on debenture, bonds other than Indexed Bond ( issued by Govt.) under 3rd Proviso to sec. 48
Bharat Khurana
(Student)
(153 Points)
Replied 13 December 2010
Long term capital gain on the sale of debenture is not exempt. It is chargeable to tax if listed @ 10% otherwise @ 20%. Benifit of Indexation shall not be avaialble as per third proviso to section 48.
CA Santosh Shinde
(Practicing CA)
(46 Points)
Replied 08 March 2011
Dear all,
Indexation is not at all applicable to the debentures as stated in third proviso to section 48 therefore long term capital gain on redemption of debentures is taxable at the rate of 20% flat.