What is short term capital gain tax on shares and how it will be calculated?
0
0
Answer Now
Comment
Report
1
Answers
Important Note โ Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures โ online & in Pen Drive/ DVD โ at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below โ
For any questions Request A Call Back
When shares & mutual funds are sold/redeemed within 12 months of their holding, the gain on such sale/redemption is known as Short Term Capital Gain. The provisions relating to tax on Short Term Capital Gain on equity shares & equity oriented mutual funds are covered by Section 111A of The Income Tax Act. As per section 111A of the Income Tax Act Short Term Capital Gain on equity shares & equity oriented mutual funds is chargeable to tax at a concessional rate of 15%. Detailed provisions of the section 111A:
Section 111A is applicable when there is Short Term Capital Gain on sale/redemption of Equity Shares & Equity Oriented Mutual Funds. Here clear emphasis is on Equity Shares & Equity Oriented Mutual Funds. Other Mutual funds like debt funds, Gilt funds, FMPs etc. are not covered by this section.