Capital gain tax

Long Term capital on Sale of Equity Shares & Equity Mutual Fund Units which are subject to Securities Transaction Tax (STT) are exempt from Income-tax.

All other Long Term Capital gains are taxable.

Any capital asset held by the taxpayer for a period of more than 36 months immediately preceding the date of its

transfer will be treated as long-term capital asset. It is charged at 20%.

However, in respect of certain assets like shares (equity or preference) which are listed in a recognised stock exchange in India then long term capital gain is exempted.

Taxable in the case of Property & Assets.

Not Taxable in the case of Shares on which STT (security transction tax) has been paid.

LTCG on sale of :

1. equity shares or

2. units of equity oriented mutual-fund

listed in a recognised stock exchange on which STT has been paid is exempt under sec 10(38).

Other than above LTCG is taxable.

The answer to this question depends on the nature of asset sold and long term capital gains derived. There are certain assets where long term capital gains are exempt from tax.

Your question is more like an objective type question in an examination. The answer to your question is both Yes and No. Tax liability depends upon the type of assets and fulfillment of conditions relating to exemptions.

I suggest that you can make best use of this forum by seeking clarifications on your specific issues.

Taxable .