How do capital gains from sale of stock differ from that of any other asset?
Capital gains arising from transfer of shares or securities are different from that of other assets, in two respects, namely, with regard to their period of holding and other with regard to the rate of tax. Period of holding: In case of shares or securities, the period of holding before sale is more than one year for such asset to be termed as Long Term Capital Asset, if the holding is one year or less, then the asset will be termed as Short Term Capital Asset. Whereas, in the case of any other asset the relevant period of holding more than three years for Long Term Capital Assets and three years or less for Short Term Capital Assets. Rate of tax: Short Term Capital Gain: If the transaction has suffered STT, then the rate of tax is 10 per cent, if the transaction has not suffered STT, then the normal rate of 30 per cent is applicable. E.g. STCG on stock (STT suffered): Sale consideration is Rs 20,000 and cost is Rs 12,000. Since the gain is short term there is no indexation. The gain i
