I bought few listed shares around 10 years back and the stocks are still listed, but there is no price appreciation. If I sell those shares with off-market transaction, I can take benefit of indexation and book long term capital loss, which can be set-off against any other long term capital gain. Is this understanding correct?
LTCG on listed equity shares on which STT is paid are taxable u/s 112A.
You can set off the LTCL only against LTCG.
I did not know that Indexation benefit is available while calculating LTCG for listed shares. Please give reference of the relevant section of the Income Tax Act and oblige.
In the case of LTCG from listed equity shares on which STT is paid, the gains above ₹1 lakh are taxable at 10% u/s 112A.
You modified the earlier opinion :(.
So even for off-market sale transaction for listed share, section 112A will apply?
Let me correct myself.
As per section 112A, the LTCG from listed equity shares on which STT is paid shall be taxed at 10% above ₹1 lakh.
In case of an off-market transaction, there is no STT paid, and hence the rate of tax shall be 10% without indexation benefit or avail of the benefit of indexation; and pay tax on the gains at 20%. You can choose the option in which the tax liability is the lowest.
Hope this clarifies.