Long Term Capital Gain Tax (LTCG) levied on Stocks : Budget 2018-19 The biggest jolt to equity investors is the introduction of LTCG regime. Central Govt now introduced LTCG on the income / profit / gain exceeding Rs.1 lakh at the rate of 10% without allowing the benefit of any indexation. However, all gains up to 31st January 2018 will be grandfathered. There is no change in STT rates. Hence, STCG on equity will continue at 15% rate. Let us assume that your purchased price of the stock is at Rs.100 (purchased before 31st January 2018) and the highest price traded price on 31st January 2018 is at Rs.110. This Rs.10 will be tax-free for you. There is no tax on this Rs.10 gain as Rs.110 is considered as the holding price. Now let us assume that you sold the share after a year at Rs.140, then only Rs.30 is taxed at 10% but not the whole Rs.40. Hence, any gain up to 31st Janaury 2018 is still tax-free for all investors. - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Thursday, February 01, 2018

Long Term Capital Gain Tax (LTCG) levied on Stocks : Budget 2018-19 The biggest jolt to equity investors is the introduction of LTCG regime. Central Govt now introduced LTCG on the income / profit / gain exceeding Rs.1 lakh at the rate of 10% without allowing the benefit of any indexation. However, all gains up to 31st January 2018 will be grandfathered. There is no change in STT rates. Hence, STCG on equity will continue at 15% rate. Let us assume that your purchased price of the stock is at Rs.100 (purchased before 31st January 2018) and the highest price traded price on 31st January 2018 is at Rs.110. This Rs.10 will be tax-free for you. There is no tax on this Rs.10 gain as Rs.110 is considered as the holding price. Now let us assume that you sold the share after a year at Rs.140, then only Rs.30 is taxed at 10% but not the whole Rs.40. Hence, any gain up to 31st Janaury 2018 is still tax-free for all investors.


Long Term Capital Gain Tax on Stocks : Budget 2018-19

The biggest jolt to equity investors is the introduction of LTCG regime. Central Govt now introduced  LTCG on the income / profit / gain exceeding Rs.1 lakh at the rate of 10% without allowing the benefit of any indexation. 
However, all gains up to 31st January 2018 will be grandfathered.

There is no change in STT rates. Hence, STCG on equity will continue at 15% rate.

Let us assume that your purchased price of the stock is at Rs.100 (purchased before 31st January 2018) and the highest price traded price on 31st January 2018 is at Rs.110. This Rs.10 will be tax-free for you. There is no tax on this Rs.10 gain as Rs.110 is considered as the holding price.

Now let us assume that you sold the share after a year at Rs.140, then only Rs.30 is taxed at 10% but not the whole Rs.40. Hence, any gain up to 31st Janaury 2018 is still tax-free for all investors.

Long Term Capital Gain Tax (LTCG) levied on Stocks : Budget 2018-19 The biggest jolt to equity investors is the introduction of LTCG regime. Central Govt now introduced LTCG on the income / profit / gain exceeding Rs.1 lakh at the rate of 10% without allowing the benefit of any indexation. However, all gains up to 31st January 2018 will be grandfathered. There is no change in STT rates. Hence, STCG on equity will continue at 15% rate. Let us assume that your purchased price of the stock is at Rs.100 (purchased before 31st January 2018) and the highest price traded price on 31st January 2018 is at Rs.110. This Rs.10 will be tax-free for you. There is no tax on this Rs.10 gain as Rs.110 is considered as the holding price. Now let us assume that you sold the share after a year at Rs.140, then only Rs.30 is taxed at 10% but not the whole Rs.40. Hence, any gain up to 31st Janaury 2018 is still tax-free for all investors. Reviewed by S. Chitra on February 01, 2018 Rating: 5 Long Term Capital Gain Tax on Stocks : Budget 2018-19 The biggest jolt to equity investors is the introduction of LTCG regime. Central...

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