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| *Ostroff, Fair and Company>>>India Taxes |
Capital gains tax on sale of shares.? |
I have sold shares which i held for more than 2 years to 15 years during 2005-06. I am constructing a house with the money. Am i eligible for tax exemptions. If you are in India, as per I T Act, you have held shares for more than one year, as such earned Long Term Capital gain Tax. Presently, Long Term Tax has Nil tax liability. Be happy and merry. Anyway, if the gains are being utilised for house construction , even in prior years you could have got exemption from tax. No LTCG is completely tax free. Yes, check your statement for the gains reported to the IRS then verify what your deduction would be for the new house and how much of the gain is exempt because of the age of your investment. In doubt? Check with your CPA. capital gains on sale of shares if sold through a recognised stock exchange is deducted in the form of securities transaction tax by the broker itself. moreover in case u have held ur shares for less than 12 months then they'll be taxable as short term capital gains,and if held for more than 12 months taxable as ltcg. rate for stcg is normal rate and for ltcg it is 20%of the gains.i think that construction of house will not render ur gains exempted. these gains can be exempted if u invest the gains in certain securities as per sec 54EC. |
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