LTCG on Sale of Shares

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3 comments

  • Official comment
    Quicko Support

    Hey Jaya, 

    In the case of LTCG under Section 112A, the gain is first adjusted with the brought forward loss and the exemption of INR 1 lac is available on the remaining LTCG. Thus, the treatment is correct and your LTCL will reduce by INR 4,000.

    Under Budget 2018, the exemption under Sec 10(38) was removed. Further, a new Section 112A was introduced to levy 10% income tax on Long Term Capital Gains on the sale of equity shares, equity mutual funds and units of business trust in excess of Rs. 1 lac for a financial year. Sec 112A was applicable to FY 2018-19 (AY 2019-20) onwards.

    Hope this helps :)

     

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  • JAYA N

    Thanks for your reply!

    What is the treatment of LTCG made on shares sold now if they were bought before STT was introduced (1-10-2004 if I'm not wrong)?

    Will grandfathering be available to such gains?

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  • Quicko Support

    Hey Jaya, 

    Grandfathering will be applicable on sale of all shares after 31-Jan-18 even if they were purchased before STT was introduced. Read more about LTCG on shares and grandfathering. 

    Hope this helps :)

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