I have 50 shares bought for the face value in 1996 now I sold for a sale proceeds of 10 lacs?

Question

How much I have to pay for capital gain tax and wat is the calculation?

Answer 1

If you have sold the shares paying security transaction tax, then the entire income is tax free and you need not pay any tax at all. If the shares are sold before 12 months, the short term capital gains are @10%. If the shares are sold after 12 months, it will be long term capital gains and the gains are exempt from tax.

The shares sold by you comes under Long Term capital gains and the gains are tax free.

The calculation is- Sale value Rs.10 lakhs, less your cost of 50 shares= your long term capital gain. That is free from tax.

Answer 2

According to Sec 112 of the IT Act, the whole of the Capital Gain Tax is exempt from the sale of Shares 12 months from the date of purchase. So if you have sold them through a recognised Stock Exchange in India. So enjoy the feat if you have paid the Securities Transaction Tax.
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Answer 3

your positon come under long term capital gain

it will be exempt if u have paid securities transaction tax.(Listed securities only).

if they are listed securitied but u did'nt pay STT then capital gain will be taxable. but u can still avail benefit u/s 54ED, by investing capital gain in equity share of eligible issue.

but if they are not listed securities, capital gain will be taxable but u can avail benefit u/s 54F.

u have sold only 50 shares for Rs. 10 lacs, i think there is no such co available whose price of share is so high even if u have got a lot of bonus share.

and at last u did'nt told about ur puchasinf cost thefore computation of tax not possible.

Answer 4

A lot of complex sections together read that if the following conditions are satisfied then NO TAX, conditions
1. The shares are held for more than 1 year
2. On the sale of shares you have paid Security Transaction Tax(STT)

That's it, If the above 2 are answered in YES then Hurray NO TAX ENJOY

CA Nitin Jain

Answer 5

Let me know the name of the company.