Short Term Capital Gain

Querist : Anonymous (Querist) 12 December 2010 This query is : Resolved
I was having investment of Rs. 30000 in a Mutual Fund and I have sold all the units for Rs. 36000 before 12 months holding.

What will be liability of Tax under "Income Tax of India" for Financial year 2010-11 if my income is above 5 lacs rupees

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A V Vishal (Expert) 12 December 2010
If shares or equity MFs are held for less than 12 months before selling, the gain arising is classified as Short Term Capital Gain.

[The only condition here is that the shares / equities should be sold on a recognized stock exchange (for example, BSE or NSE), and a securities transaction tax (STT) should be paid on it.

If the sale of shares is off-market (that is, if the sale is not on a stock exchange), the gain would be classified like that for other capital assets.

In this case, the short term capital gain is taxed at 15% of the gain.

s.subramanian (Expert) 12 December 2010
yes.

Advocate. Arunagiri (Expert) 12 December 2010
Well advised by Mr.Vishal.

Sathyan A.R. (Expert) 12 December 2010
Taxability of short term capital gains: Section 111A of the Income tax Act provides that those equity shares or equity oriented funds which have been sold in a stock exchange and securities transaction tax is chargeable on such transaction of sale then the short term capital gain arising from such transaction will be chargeable to tax @10% upto assessment year 2008-09 and 15% from assessment year 2009-10 onwards.

in your case the short term capital gain will be Rs.6,000/- and charged @15%

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