From which date is the capital gains tax after 1 lakh applicable?
I am regular income tax payer and I sold some of my old shares of finolex, rain industrties which were held by me for so many years, in November 2017. My CA has added 10% tax on same. I am in doubt, as according to some of friends, there was no provision of tax on capital gains at that time
I hereby request you to let me know whether I am liable to pay the tax on shares which I held for so many years ,and sold before December 2017.
Dr Chandrashekhar Lele
Asked 3 months ago in Capital Gains Tax from Karad, Maharashtra
If I have paid tax which I am not supposed to , let me know the procedure to claim it.
Asked 3 months ago
Taxes applicable on Shares sold after 1st April, 2018 @ 10%, long-term capital gains tax if gains amount is more than Rs.1 lakh.
Q. From whch date the capital gains tax after 1 lakh is applicable?
ans . Long term capital gain is chargeble on sale of share after 31st march-2018 ( with effect from 1st april 2018) at rate of 10 % subject to grand fathering of gain earned upto 31st january-2018
long term capital gain will be calculated as per the following formula
sales price of shares 1000
cost of share higher of the below (a and b)
a. purchase price of shares
b. market value on 1st janu-2018
Q. If I have paid tax which I am not supposed to , let me know the procedure to claim it.
ans. file income tax return for the respective year and cliam refund of any excess tax paid by you and alos tds deducted from your income by others
Hope you are doing well !
1. No, you are not liable to pay any tax on shares which you held for so many years ,and sold before December 2017.This provision is applicable from 1st April, 2018.
2. Claim the refund of tax already paid in return filing for A.Y 2018-19.
Thanks & Regards,
No. Taxes are only applicable on shares sold after 1st April, 2018 @ 10%.
Prior to that LTCG were exempt from tax
To claim the refund, file your return correctly and you can get a refund of excess tax paid.
Thank you for your question
1. The new provision is applicable from 1st April, 2018. You are not liable to pay any tax for the shared sold in Nov 2017.
2. You can claim refund of tax for filing a return for A.Y 2018-19.
Hope this clafiries
Managing Partner - Vincent Advisors
The tax will be levied only upon transfer of the long-term capital asset on or after April 1, 2018, as defined in Clause (47) of Section 2 of the Act.
In other words, if you sell all your shares or equity mutual fund units held for over a year on or before the last day of this fiscal (FY 2017-18), you can still claim tax exemption on long-term capital gains.
Thanks & Regards,
If the shares were sold in Nov 17, the long term gains shall be exempt. There was no chargeable on LTCG at that time.
If return has been filed, you can revise the return and claim for refund.
We may help you with revision of ITR.
LTCG on share sale if STT paid is not taxable upto 31 March 2018. However, if such sale was transacted off market, then the same shall be subject to tax in India - 10% (without indexation) and 20% (with indexation) whichever is lower.
If taxes have been paid and ROI already filed for FY 2017-18, then a revised return may be filed and a refund should be claimed.
LTCG on share sale transactions are now taxable @ 10% (plus applicable surcharge and cess) from 1 April 2018.
Hi Dr. Lele,
You are not required to pay Long term capital gain tax on shares sold before 31 March 2018.
It's applicable from 1 April 2018.
You an claim refund if excess taxes paid while filing return of income.
We can help you in filing ITR.
The long term capital gain tax is applicable only from January 31, 2018 so any gains before this date are not taxable. Your CA seems to have done some error. The tax is applicable only on gains made after Jan 31 during the year and off course any sale in the current FY 2018-19.
Dear Chandrashekar Lele,
Long Term Capital Gains Tax of 10% tax is applicable on only on shares sold from 1-4-2018.
In your case as you have sold your shares on Nov'17, LTCG is exempted. In case if you have paid taxes file a revised return and claim refund of Taxes paid.
1.You are not liable to pay any tax for shares sold before Dec,2017.
2. You can claim the refund.
From A.Y. 2019-20, if the LTCG on equity shares is more than 1 lacs then you need to pay 10% tax.For A.Y. 2018-19, market value of shares as on 31.01.2018 will be taken as cost for the calculation of capital gain in F.Y. 2018-19.
In A.Y. 2018-19, there is no capital gain taxation.
This event pertains to FY 2017-18. You can revise your return till 31st March 2018 or till completion of assessment whichever is earlier. To check if your assessment is completed you need to login to your efiling account and check if intimation under section 143(1) is issued. If yes, you can't revise return but you can file for rectification under section 154 for mistake apparent from records.
You have no liability to pay tax on that. If you paid tax on that then you can claim refund on the same
Thanks & Regards
Tax on LTCG above Rs. 1 Lakh is applicable for Gains made fro FY 2018-19 onwards.
If you have already paid excess tax, then kindly revise your AY 2018-19 Returns and claim Refund of the same