Any time a security is purchased and sold for a gain, after holding the security 1 year or longer, it is a long term capital gain.
2007-03-20 03:21:57
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answer #1
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answered by Anonymous
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Whenever a transaction of sale/purchase of shares or units is made on a Recognised Stock Exchange,viz BSE, NSE, etc The amount of transaction is subject to a tax for making the security transaction. This tax is known as security transaction tax. It is applicable on all transactions made on the Stock Exchange.
In respect of the long term capital gain transactions, if you sale a security on a recognised stock exchange, after holding that security for a period more than a year, the profit made on such transaction is classified as Long term capital gain and you are subject to make the payment of the STT.
Under the Income Tax Act, in case of capital gain by sale of shares of any company or unit of mutual fund specified u/s 10(23D) through a recognised stock exchange,where security transaction tax had been paid ,it shall be treated as long term capital gain subject to a holding period of more than 12 months before the date of sale, is exempt from tax.
Regards,
Rb
2007-03-21 03:16:15
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answer #2
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answered by rb 2
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If you hold any security transaction for more than one year, it falls under long term capital gain. There is however no tax on the income derived from the shares purchased after October 2004 and sold after one year.
2007-03-21 01:08:28
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answer #3
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answered by Shemit 6
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Securities Transaction tax is applicable in respect of the following transactions;
a)Purchase or sale of an equity share in a company or a derivative or a unit of an equity oriented fund,entered into in a recognised stock exchange on or after 1st october 2004
b)sale of unit of an equity oriented fund to the mutual fund on or after 1st october'2004
under the IT Act in case of capital gain by transfer of shares of any company or unit of mutual fund specified u/s 10(23D) ,it shall be treated as long term capital gain if the same is held for more than 12 months before the date of transfer.
2007-03-21 02:33:14
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answer #4
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answered by Anonymous
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