stock trading capital gains tax
stock trading capital gains tax
What is Long Term Capital Gains Tax for Indian share market transactions with STT.?
What is the exact definition of LTCG with regarding indigenous people listed on the stock exchanges? Is it sold after 1 year or 1 year + 1 day or what? I tried Google and Believe it or not, an article came up with a simple explanation for the definition of LTCG regarding operation sharing a bag of valid values. In my case, I have the bonus shares issued on 26/11/2005 by Mphasis BFL shares initially purchased by say 7/1/2004. If I were to sell my shares bonus on 27/11/2006 (ie Monday / tomorrow), I will be subject to tax on capital gains in the long run (which is zero) or if I have to wait until on 28/11/2006 or what? For tax purposes, what is the date of acquisition of bonus shares? Is the date of action (which in my case would be 26/11/2005) or date of original purchases (in my case, have been 7/1/2004)
If the date of allotment of bonus shares is 26-11-05, you can sell it on 27-11-06 in the Security Council National or BSE and will become and LTCG is tax free. The date of allotment of shares bonus for you is 26-11-05 and not 7-1-04. The date of purchase applies 7-1-04 shares acquired on 7-1-04 stocks and bonds is not related to this date in order to LTCG. http://incometaxindia.gov.in/FileYourReturn/CapitalGains.asp
