Long-Term Capital Gains On Transfer Of Equity Shares/Units In Cases Covered By Securities Transaction Tax


As per section 10(38), Long-term capital gains arising on transfer of equity shares or units of equity oriented mutual fund is not chargeable to tax from the assessment year 2005-06, if such a transaction is covered by securities transaction tax. The securities transaction tax is applicable if equity shares or units of equity oriented mutual fund are transferred on or after October 1, 2004 in a recognized stock exchange in India (or units are transferred to the mutual fund). If the securities transaction tax is applicable, long-term capital gain is not chargeable to tax; short-term capital gain is taxable @ 10 per cent (plus SC and EC). If income is shown as business income, the taxpayer can claim rebate under section 88E.


Cnergyis Infotech India Pvt Ltd

205, Linkway Estate,
Near Chincholi Fire Station / Mindspace,
Above ICICI Bank, Link Road, Malad (West)
Mumbai 400 064, Maharastra India
Phone - 1800 233 6504
email: support@filemyreturns.com