Example-Long Term Capital Gain on Shares
Last updated at July 31, 2026 by Teachoo
Chapter 9 Income from Capital Gain
What is Income from Capital Gain
You are here
You are here
Courses
Free Income Tax Certification Course
- Chapter 1 Introduction
- Chapter 2 Different Heads of Income
- Chapter 3 Different ITR Forms & Due Dates
- Chapter 4 Income Tax Rates
- Chapter 5 Income from Salary & Deductions
- Chapter 6 Business Income-Proprietorship
- Chapter 7 Business Income-Patnership
- Chapter 8 Income from House Property
-
Chapter 9 Income from Capital Gain
- Chapter 10 Employee on Contract
Transcript
Shares Purchase for 500000 Shares Sold for 900000 Commission Paid to broker on Purchase 2000 Commission Paid to Broker on Sale 3000 Securities Transaction Tax Paid on Purchase 400 Securities Transaction Tax Paid on Sales How is Capital Gain Calculated? Full Value of Consideration 900000 Less Cost of Acquisition 500000 Cost of Improvement Short Term Capital Gain 400000 Profit 394000 600 Expenses of Transfer 0 Note Brokerage and STT Not considered in Case of Listed Shares Tax Net Tax 0 Cess 4% Net Tax + Cess Rebate 5000 5000 LTCG on Shares of Listed Company (Infosys) How is Tax Calculated on these Shares As per Section 112A 100000 Capital Gain is Exempt Balance Capital Gain is Taxed at 10% On Income Exceeding 250000 Tax=(400000 100000 250000)*10%=50000*10%=5000 0 0 0
