समृद्धि की पाठशाला

  Adjust your Capital Gains against Basic exemption to reduce  your Tax Liability   Two types of capital gains are there : 1. Short Term Capital Gains (STCG) 2. Long Term Capital Gains (LTCG)   1. Short Term Capital Gains :                a.) Gains arising out of sale of Equity Oriented MF or Shares held for less than 12 months.                b.) Gains arising out of sale of any other capital assets held for less than 24 months ( in some assets 36 months)   2. Long Term Capital Gains :             a.) Gains arising out of sale of Equity Oriented MF or Shares held for more than 12 months b.) Gains arising out of sale of any other capital assets held for more than 24 months ( in some assets 36 months)   Tax Treatment:   1. STCG Tax Treatment   a. Special STCG - covered U/S 111(A) : ...

  Is it beneficial to sale shares on listing date to reap listing gains ??   Not always …take this real life example   You applied for and were allotted (on July 15 2021) , 13 lots of shares of Clean Science Technology  Each lot contains 16 shares and price band of Rs. 900 per share.   So your total shares are 16 x 13 = 208 shares and Total Investment is Rs. 900 x 208 = Rs. 187200   Now on Listing day  (July 19) share price was listed @ Rs. 1785 per share and you sold all shares on listing day . so your sale Value is Rs. 1785 x 208 shares = Rs. 371280   Your Gain = Rs. 371280-187200= Rs. 184080   Since you held the shares for less than 12 months , such gains will be treated as Short Term Gains (STCG) and will be Taxed @15% +4% cess ,  so total tax = Rs. 28716 and your net gain = Rs. 184080-28716=Rs. 155363   Gain per share = Rs. 155363/208 =Rs. 747   Now suppose you will sell  the shares o...

  Capital gain tax on sale of Zomato IPO shares or any  IPO allotment:   Do you bid for IPO allotment and   after allottment do you sale shares on listing day ( or subsequent days) to reap listing gain ?? Such profit or gain reaped on listing day (or any day sold before 12 months) is termed as Short Term Capital Gain (STCG) and will be taxed @15% on full gain (irrespective of your Tax slab ) Let us take real life example , Bid price of Zomato was Rs. 76 per share and on listing day (or any day before 12 months)   you sold it for Rs. 125 per share. Your Profit is Rs. 49 Per share . suppose you incurred Re 1 as transaction charge in sale so your net profit is Rs. 48 Per share . Lot size of Zomato was 195 and you were allotted 1 lot only . If you sold full 1 lot your net profit is Rs. 48*195=Rs. 9360 . So your Tax liability will be Rs. 9360*.15%=Rs 1404 plus 4% cess. (irrespective of your Tax slab )     Now Let us understand what is Capit...