I bought shares worth INR 70,000 in 2017 which are now worth around INR 1,80,000. It is long term capital gains, how much tax do I have to pay?
In Budget 2018, the grandfathering rule was announced u/s 112A which implies that - long term capital gains above INR 1 Lakh will be taxed at 10% after 1st Feb 2018.
Therefore to calculate LTCG:
- Take the equity value as on 31st Jan 2018 to be X
- so LTCG = Sales price - value as on 31st Jan 2018
- LTCG = 1,80,000 - X
Any tax on LTCG will be 10% above INR 1 Lakh
- LTCG below INR 1 Lakh is fully exempt
- LTCG above INR 1 Lakh will be taxable at 10% for the amount above INR 1 Lakh only.
Hope this helps!
Refer to our learn article on LTCG on sale of Equity Shares and Equity Mutual funds