Income from Capital Gains for CFP – 10

Understanding tax rates:

Securities Transaction Tax

Where, P = Purchaser

S = Seller.

Income From Capital Gains for CFP – 9

Deduction on Purchase of Certain Bonds Sec 54EC:

Deduction On Capital Asset Other Than Residential House Property Sec 54F (Important for Examination):

Illustration:

Sailesh sells shares in XYZ Ltd. for a net consideration of Rs. 20 lakh and earns a long-term capital gain of Rs. 15 lakh. Within 3 months, he purchases a new residential house for Rs. 10 lakh. He owns no other house other than the new house. The amount of exemption under sec. 54F that he would be entitled to would be _______.

a)Rs. 7.5 lakh

b)Rs. 10 lakh

c)Rs. 5 lakh

d)None of the above

 

Maya sells shares in PQR Ltd on 14th June, 2006 (off market), for a net consideration of Rs. 20,00,000 and earns a long-term capital gain of Rs. 15,00,000. Within 3 months, she purchases a new residential house for Rs. 10,00,000. She owns no other house other than the new house. Now if Maya were to sell the new house within one year of purchase for Rs. 15,00,000, the tax treatment in the year of sale would be ______.

 

a)Short-term capital gain of Rs. 5,00,000 and Long-term capital gain of Rs. 10,00,000

b)Short-term capital gain of Rs. 5,00,000 and Long-term capital gain of Rs.7,50,000

c)Short-term capital gain of Rs. 7,50,000 and Long-term capital gain of Rs. 5,00,000

Long-term capital gain of Rs. 12,50,000