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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

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.