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This exemption is only for

1.Equity Shares 

2.Units of Equity Oriented Fund

 

As per Section 10 (38)

Long Term Capital Gains

On

Sale of

Equity shares or Unit of Equity oriented funds

Is Exempt

if following conditions are satisfied

Shares must be sold on recognised stock exchange

      And

Equity oriented fund sold through recognized stock exchange or Sold to mutual fund

Type of Security

Sold through

Shares

Sold through Recognised stock exchange  
   
Equity oriented fund Sold through Recognised stock exchange
 Or 
Sold to Mutual fund 

 

(b) Security transaction tax (STT) is charged on transaction  

 

Note:- 

For listed shares, the period of holding is 12 months to be classified as long term

Unlisted Shares are not covered in this exemption as they are not listed on Stock Exchange

Q9 A

Particular Amount
20/05/2013  
Shares purchased on stock exchange of reliance 20
Price per share 800
   
21/06/2015  
Shares sold on stock exchange of reliance 15
Price per share 900

Calculate Long Term Capital Gain

View Answer

Q9 B

Particular Amount
20/05/2013  
Shares purchased on stock exchange of reliance 20
Price per share 800
   
21/06/2015  
Shares sold on stock exchange of reliance 15
Price per share 700

Calculate Long Term Capital Gain/Loss

View Answer

Q9 C

Particular Amount
20/05/2015  
Shares purchased on stock exchange of reliance 200
Price per share 800
   
21/06/2015  
Shares sold on stock exchange of reliance 150
Price per share 820

Calculate Short Term Capital Gain

View Answer

Q9 D

CASE  CASE 1 CASE 2 CASE 3
Income From Salaries 800000 200000 320000
Income from Capital Gains      
Gross Total Income 800000 200000 320000
Less      
Deductions Chapter VIA 30000 30000 30000
Net Total income      
       
Taxable STCG      
Tax @ 15% on Sale of Shares      
       
Remaining Income      
       
Tax on Remaining Income      
Total Tax      
Rebate      
Net Tax      
Cess 3%      
Total Tax      
View Answer

 

 

  1. Income from Capital Gains
  2. Exemptions
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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