Chart of Income Tax Rate on Long term Capital Gain(LTCG) for Last 5 Years. Currently Income Tax rate on Long Term Gain is 20% plus 3% Education Cess and Surcharge(if Applicable). There is no Income Tax on Long term gain on equity shares on which STT is paid .i.e. Those equity shares which are sold through recognized stock exchange, then no income tax is payable on such long term gain. For Equity Shares to be treated as long term must be hold for 12 Months. Read the Meaning of Long Term for Different Assets
|Tax on LTCG||2009-10||2010-11||2011-12||2012-13||2013-14|
|Surcharge on Individual/HUF/AOP/BOI (if net Income exceeds Rs. 10Lac)||10%||–||–||–||–|
|Surcharge on Firm/LLP(if net income exceeds Rs. 1Crore)||10%||–||–||–||–|
|Surcharge on Domestic Company (if net income exceeds Rs. 1 Cr.)||10%||10%||7.5%||5%||5%|
|Education Cess & SHE Cess||3%||3%||3%||3%||3%|
- Tax on LTCG can be taken as 10% +SC+ Cess in case of transfer of listed shares/ securities units without indexation benefit.
- Income from LTCG is exempt in case of transfer of equity shares/units of equity oriented fund which are liable to STT.