The governemnt has release press release about the new Rajive Gandhi Equity Svanings scheme which is approved by the Union Finance Minister Shri P. Chidambaram . The scheme is exclusively for the first time retail investors in Securities Market. This Scheme would give tax benefits to new investors who invest up to Rs. 50,000 and […]
No, unlike Income Tax Act 1961, the new Direct Tax Code 2010 , likely to be effective from 01/04/2012 , does not prescribe any special tax rate. Now the long term or short term are part of total income and is taxed at the normal tax rate applicable to you. Note following points regarding taxation of capital gains.
As on now tax rate on short term capital gains on shares or units which is subject to STT are taxed @ 15 % . However under Direct Tax Code 2010 ,not only there is no specific tax rate for STCG , it is proposed that the STCG on listed shares or units shall be taxed only to the extent of 50 % of gains computed. For example , let us say you bought a share of X ltd for Rs 100 and sold for 150 after six months.
The revised direct tax code has proposed six major amendments and changes in computation of capital gains. These are Normal tax rate for all kinds of short term capital gains The capital gain arising from transfer of any investment asset held for less than one year from the end of the financial year in which […]