CAPITAL GAIN.jpg

 

Earlier

On Sale of shares on a Recognized Stock Exchange

on which Securities Transaction Tax is paid

Long Term Capital Gain was Exempt

 

Now

This exemption has been withdrawn

This Long Term Capital Gain will be taxed at 10%

However benefit of indexation will not be available

Exception

No tax payable if Long Term Capital Gain upto 100000 is exempt

 

Note 1

Sale of Shares upto 31 march 2018 will be still exempt

Note 2

For Sale of Shares from 1 April 2018 Onwards

Cost Price will be

Higher of

Value as on 31 Jan 2018

Cost Price

S.N: Particualrs CASE 1 CASE 2 CASE 3 CASE 4
A SALES PRICE 250 250 200 150
           
B COST PRICE 100 100 200 100
C VALUE AS ON 31 JAN 2018 200 50 100 200
D COST OF ACQUISITION(HIGHER OF B AND C) 200 100 200 200
           
E PROFIT (A-D) 50 150 0 -50
           

 

Example 1

Suppose 1000 shares purchased for Rs 60 each on 1 Jan 2017

They are sold at 80 each on 20 March 2018

Calculate Capital Gain and Tax

View Answer

 

Example 2

Suppose 1000 shares purchased for Rs 60 each on 1 Jan 2017

Price as on 31 Jan 2018 was 75

They are sold at 80 each on 20 April 2018

Calculate Capital Gain

View Answer

 

Example 3

Suppose 1000 shares purchased for Rs 60 each on 1 Jan 2017

They are sold at 200 each on 20 April 2018

Calculate Capital Gain

Assume Price as on 31 Jan 2018 is 75 per share

View Answer

 

Example 4

Suppose 1000 shares purchased for Rs 60 each on 10 Feb 2018

They are sold at 200 each on 20 March 2019

Calculate Capital Gain

Assume Price as on 31 Jan 2018 is 75 per share

View Answer

 

Example 5

Suppose 1000 shares purchased for Rs 60 each on 10 Feb 2018

They are sold at 200 each on 11 Jan 2019

Calculate Capital Gain

Assume Price as on 31 Jan 2018 is 75 per share

View Answer
  1. Tax Practical
  2. Budget Amendments - Changes in 2017-18
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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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