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wether exemption u/s 10(38) available??

ca ankita kesarwani (gbfb) (119 Points)

09 March 2010

hiii... frnz

plz tell me whether exemtion u/s 10(38) under IT act ,since STT is withdrawn ???

thanx in advance....

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5 Replies

Max Payne (employed) (2574 Points)
Replied 09 March 2010

10(38) will stand inconsequential (Useless)

when STT is removed in the Direct Taxes Code....

This FY u can claim this exemption... Also next FY

But next year when DTC comes into force, LTCGwill arise, which is taxable..

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C.Balaji (Learner) (1867 Points)
Replied 09 March 2010

Dear G.K......

I could not understand what u say????........

Sec 10 (38) - Long term capital Gain on sale of shares or units of a mf through recognised SE and which has suffered STT......Exempt from tax......

Vinit Agarwal (Audit Accounting and Taxation) (28 Points)
Replied 10 March 2010

STT is deleted from Profit and gain from business or profession and not from Capital gain. that means you are allowed to deduct stt as an expenses while computing PGBP and at the same time exemption u/s 10(38) is allowable

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Rajat Singhal CA,CS,CFA (Senior Manager (F&A)) (254 Points)
Replied 10 March 2010

Hello Ankita,

As per the draft bill of DTC :

LTCG on equity shares, or units which was previously exempt u/s 10(38), will now be taxable at normal rates.

sixth schedule of the draft bill which is pertaining to " Incomes not to be included in the total income" does not mention about the LTCG on equity shares.

So ordinarily resident evil is absolutely right you can claim this exemption till the time DTC is not in force.

Regards

Rajat

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