Clasiification of Long Term and Short Tem Capital Gains/Loss

• Shares or Units of Equity oriented Mutual Funds Listed on Recognised Stock Exchange in India

         (a)If any shares listed on any recognised stock exchange in India are held for more than 12 months, it is treated as long Term for taxation Purposes.

          (b)If any shares are listed on any recognised stock exchange in India held for less than 12 months, it is treated as Short Term for Taxation Purposes.

• Shares or units of Equity Oriented Mutual Funds not listed on Recognised Stock Exchange in India

        (a) If any unlisted shares are held for more than 24 months, it is treated as long term for Taxation Purposes.

        (b) If any unlisted shares are held for less than 24 months, It is treated as Short term for Taxaxtion Purposes.

  Taxation of Capital Gains for Shares of Equity Oriented Mutual Funds

• Shares or Units of Equity Oriented Mutual Funds Listed on Recognised Stock Exchange

         STCG- Chargeable at 15% u/s 111A.

         LTCG- Chargeable at 10%   u/s 112A without Indexation Benefit.

        Note: Gains in excess of Rs. 1,00,000(One lacs) is chargeable at 10% in case of LTCG. Income Below Rs. 1,00,000(One Lacs) is exempt. This benefit is not provided in case of STCG.

• Shares or Units of Equity Oriented Mutual Funds not Listed on Recognised Stock Exchange

         STCG- chargeable at slab rate applicable to assessee.

         LTCG- chargeable at 20% with Indexation Benefit.

Benefit of Basic Exemption Limit

It is allowed for only resident individual or HUF.

Rebate under Sec 87A and Chapter VI-A

Rebate under Sec 87A and Chapter VI-A(80C, 80D etc) is not allowed.

IntraHead Adjustment of STCL and LTCL

Short Term Capital Loss- It can be adjusted with any other STCG or LTCG.

Long Term Capital Loss- It can be adjusted with only LTCG. 

InterHead Adjustments of STCG and LTCG

• Following losses can be adjusted with STCG and LTCG

        (a) Loss from House Property only to the extent of Rs. 2,00,000(Two Lacs.)

        (b) Business Loss other than Speculative Loss.

Carry Forward of STCL and LTCL

Short Term Capital Loss- It can be carried forward upto 8 Assessment years.

Long Term Cpaital Loss- It can be carried forward upto 8 Assessment Years.