Long term capital gain by sale of shares & investment in purchase of housing property

Share
Share This Thread
  1. L DAYANANDA SAGAR

    L DAYANANDA SAGAR New Member

    Sir,
    I am planning to sell Shares from a reputed co ,which is demated and use the same amounts for investment in a Housing Project. Wheather this is exempted from Capital Gains or attracts Capital Gain Tax, if so what will be the slab.Kindly advice.
    Regards,
    L DAYANANDA SAGAR
     
  2. ZED

    ZED Well-Known Member

    If the shares will be sold in market (not off market) and STT is payable then the gain shall be exempt u/s 10(38).
     
  3. L DAYANANDA SAGAR

    L DAYANANDA SAGAR New Member

    Sir,

    Kindly be specific, regarding Sale of Shares in market & Investment of the
    proceeds in a Housing Project is exempted from Capital Gains Tax,pl advice.

    Regards,
    L DAYANANDA SAGAR
     
  4. ZED

    ZED Well-Known Member

    Will you sell the shares on stock market?
     
    L DAYANANDA SAGAR likes this.
  5. L DAYANANDA SAGAR

    L DAYANANDA SAGAR New Member

    YES THROUGH THE STOCK BROKER
     
  6. ZED

    ZED Well-Known Member

    Ok, if the shares were held for long term and were hold for more than a year then gain shall be exempt u/s 10(38). Otherwise the same shall be taxable and no exemption is available under any provision of the Income Tax Act.
     
  7. L DAYANANDA SAGAR

    L DAYANANDA SAGAR New Member

    Thank you for the reply. I wish to confirm that this Shares is held by the undersigned for more than Two Decades.
     
  8. ZED

    ZED Well-Known Member

    S.10(38) any income arising from the transfer of a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust where—

    (a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and

    (b) such transaction is chargeable to securities transaction tax under that Chapter:

    Provided that the income by way of long-term capital gain of a company shall be taken into account in computing the book profit and income-tax payable under section 115JB:

    [w.e.f F.Y 2016-17]
    Provided also* that nothing contained in sub-clause (b) shall apply to a transaction undertaken on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in foreign currency.

    Explanation.—For the purposes of this clause, "equity oriented fund" means a fund—

    (i) where the investible funds are invested by way of equity shares in domestic companies to the extent of more than sixty-five per cent of the total proceeds of such fund; and

    (ii) which has been set up under a scheme of a Mutual Fund specified under clause (23D):

    Provided that the percentage of equity shareholding of the fund shall be computed with reference to the annual average of the monthly averages of the opening and closing figures;

    w.e.f. F.Y 2016-2017

    Explanation.—For the purposes of this clause,—

    (a) "equity oriented fund" means a fund—

    (i) where the investible funds are invested by way of equity shares in domestic companies to the extent of more than sixty-five per cent of the total proceeds of such fund; and

    (ii) which has been set up under a scheme of a Mutual Fund specified under clause (23D):

    Provided that the percentage of equity share holding of the fund shall be computed with reference to the annual average of the monthly averages of the opening and closing figures;

    (b) "International Financial Services Centre" shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);

    (c) "recognised stock exchange" shall have the meaning assigned to it in clause (ii) of the Explanation 1 to *sub-section (5) of section 43;
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Long Term and Short Term - Gains from Equity Investing Income Tax Feb 9, 2018
LONG TERM CAPITAL GAIN ON SHARES Income Tax Jan 16, 2018
Long term Capital gain - 10(38) Income Tax Dec 19, 2017
How to save tax on long term Capital gains Income Tax Nov 24, 2017
long term capital gain Income Tax Nov 14, 2017