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Tax on long-term capital gain

 

Generally, long-term capital gains are charged to tax @ 20% (plus surcharge and cess as Applicable), but in certain special cases, the gain may be (at the option of the taxpayer) Charged to tax @ 10% (plus surcharge and cess as applicable). The benefit of charging Long-term capital gain @ 10% is available only in following cases:

 

1. Long-term capital gains arising from sale of listed securities and it exceeds Rs.1,00,000 (Section 112A);
2. Long-term capital gains arising from transfer of any of the following asset:
   1. Any security which is listed in a recognised stock exchange in India;
   2. Any unit of UTI or mutual fund (whether listed or not);
   3. Zero coupon bonds

 

Securities for this purpose means “securities” as defined in section 2(h) of the Securities Contracts (Regulation) Act, 1956. This definition generally includes shares, Scrips, stocks, bonds, debentures, debenture stocks or other marketable securities of a like Nature in or of any incorporated company or other body corporate, Government Securities, such other instruments as may be declared by the Central Government to be Securities and rights or interest in securities.

This option is available only in respect of units sold on or before 10-7-2014.