• LTCG - is it scrip to scrip

Hi. Is LTCG on scrip to scrip basis or is it for the whole capital gain for the year? Eg. If I have 5 stocks. And I make 30k gain in all of them individually in one year. So will my ltcg for the year be charged on 50k (150000-10000) or will I be exempted coz I made only 30k per scrip.
Asked 2 years ago in Capital Gains Tax from Mumbai, Maharashtra

Hi,

The limit of 1 lac is on aggregate basis. You will have to pay tax on 50k as per the newly introduced budget.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
176 Consultations

5.0 on 5.0

Hi

The exemption is on aggregate basis. You will have LTCG of 50k and will have to pay taxes accordingly.

Lakshita Bhandari
CA, Mumbai
4255 Answers
239 Consultations

5.0 on 5.0

It is on aggregate basis and hence you will be charged on 50k.

Hope lt clarifies.

Nikhil Khanna
CA, Mumbai
1428 Answers
19 Consultations

4.8 on 5.0

Your LTCG will be charged on 50k.

Harsh Kumar Garg
CA, Panipat
26 Answers

5.0 on 5.0

LTCG is not calculated on script to script basis. It will be calculated for all scripts.

For the purpose of calculating taxable LTCG, cost price will be higher of purchase price or highest price as on 31 Jan, 2018

Sourabh Maheshwari
CA, Bhilwara
9 Answers

Not rated

HI,

If all of them qualify for long term capital gains any they are eligible for exemption then no scrip wise calculation is required.

However, if they are not eligible for exemption, then to compute their period of holding, the gains from the stocks with different purchase and sale dates are computed separately.

Thanks

Damini

Damini Agarwal
CA, Bangalore
343 Answers
25 Consultations

5.0 on 5.0

It will be taken on annual basis not scrip basis.

Thanks,

CA Sourabh Pahuja

Sourabh Pahuja
CA, Delhi
78 Answers
1 Consultation

5.0 on 5.0

Hi,

As per new section 112A inserted by the finance bill 2018, the LTCG accruing to an assessee being in the nature of transfer of capital asset being equity shares in a company, aggregate of which exceed Rs. 1 Lakh shall be taxable at the rate of 10%.

Hence, LTCG basic exemption shall be calculated for aggregate of Rs. 1 Lakh and not scrip wise.

As such, if you transfer five scrips, aggregate LTCG on which exceeds Rs. 1 Lakh, shall be taxable @10%.

However, if you make profit on 1 scrip and loss on other scrip, both of which are in the nature of Long Term Capital Gain/ Loss, shall be allowed to be set-off against each other and then aggregate of Rs. 1 Lakh shall be taken into consideration for the purpose of imposition of LTCG Tax @10%.

Hope your query stand clear.

Regards,

Sunny Thakral
CA, Delhi
224 Answers
8 Consultations

5.0 on 5.0

No it is for one year and not scrip wise.

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
118 Consultations

5.0 on 5.0

It is for whole capital gain

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

LTCG proposed in the union budget 2018 is for capital gains made from equity investments and units of equity oriented MF. So it will be taken as a whole. It is not scrip to scrip or scheme to scheme basis. Even if you have LTCG on equity investment as well as on sale of Mutual fund units, you have to pay tax on combined gains in that financial year.

In your example, LTCG tax will be 10% of 50000 (150000-100000)

Dikshit Jain
CA, Mumbai
1 Answer

Not rated

LTCG will be calculated on overall basis and not on scrip to scrip basis.

Vivek Kumar Arora
CA, Delhi
3291 Answers
175 Consultations

5.0 on 5.0

Hi,

The total Capital Gain made in a particular Financial Year in excess of Rs. 1 Lakh will be taxable. Capital Gain is calculated per Stock and then aggregated to determine the limit of Rs. 1 Lakh.

In your Example, you'll have to pay tax at 10% on 50K if the date of sale is on or after 1-Apr-18

Pradeep Bhat
CA, Bengaluru
511 Answers
41 Consultations

5.0 on 5.0

You need to arrive at LTCG scrip wise.

B Vijaya Kumar
CA, Hyderabad
901 Answers
74 Consultations

5.0 on 5.0

At present, the capital gain on sale of shares held for more than a year is exempt.

Bharat Poplani
CA, Zirakpur
56 Answers

4.9 on 5.0

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