| 1. |
Individual /HUF
In case of individual or a HUF, being a resident, tax on long-term capital gains is payable @20%.
However, in case of resident individual or resident HUF if other income is less than basis exemption limit then, such LTCG shall be reduced by such short fall and tax on balance of LTCG shall be computed @20%. Accordingly, tax on such LTCG shall be -
20% x [Such LTCG - (Basic Exemption Limit— Other Income)] |
2. |
Domestic Company
Long term capital gain shall be taxed @ 20%. |
3. |
Non- resident (Not being a company) or a foreign company |
|
(a) |
Unlisted Securities : The amount of tax on long-term capital gains arising from the transfer of a capital asset, being unlisted securities, shall be calculated @10% without giving effect to the 1st (converting capital gains into foreign currency and reconverting it into Indian currency) and 2nd proviso to sector 48 (indexation benefit) |
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(b) |
In case of other capital assets, the tax shall be computed @ 20% |
4. |
In any other case -
Long term capital gains shall be taxed @20%. |
Notes -
As per proviso to sec 112 where the tax payable in respect of any income arising from the transfer of being listed securities (other than a unit) or zero coupon bonds, being long term capital assets, exceeds 10% of the amount of capital gains before indexation, then such excess shall be ignored while computing the tax payable by the assessee.
Thus, tax payable in case of listed securities (other than a unit) or zero coupon bonds, shall be lower of —
| (i) |
10% of gross capital gains (Net consideration - Cost of acquisition without indexation) |
(ii) |
20% of long term capital gains (Net consideration - Indexed cost of acquisition) |
No deduction under Chapter VIA on LTCG
No deduction under chapter VIA can be availed in respect of the long term capital gains included in the total income of the assessee.
LTCG on transfer of equity shares chargeable to STT
Under section 10 (38) income arising from transfer of long-term capital asset, being equity share in a company or a unit of equity oriented fund or a unit of business trust listed in recognized stock exchange on which security transaction tax is paid shall be exempt from tax.
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