Tax Book 2023

Capital Gains Chapter- 12

Is asset is a capital asset?

No:

Although gain shall not taxable under

capital gains but may be taxable as

business income or income from

other sources.

Yes:

If chargeable to tax

No:

The same may be exempt from tax

under 2nd Schedule

Yes:

If it is an asset mentioned under

section 38(5)

Yes:

No loss will be recognized only gain will be

chargeable to tax

No:

Gain and loss both will be recognized

.

3. Gain on sale of securities: [U/s (37A), Rule 13A – 13N]

Capital gain on disposal of securities (other than exempt from tax) shall be treated under NTR as

SBI from 01 July 2010. Tax shall be charged on capital gain on disposal of capital assets acquired

for a period which is less than 4 8 months at following rates.

The gain arising on the disposal of a security by a person shall be computed in accordance

with the following formula:

Gain = (Consideration received by the person on disposal of the security) – (Cost of acquisition of the

security)

Gain from capital assets under this section shall not apply on gain on disposal of securities by a

banking company or an insurance company.

Holding Months

Tax year 2017

Tax year 2018, 2019 , 2020 &

2021

Tax Year

2022

Tax Year 2023

and onwards

Securities

acquired before

1 July 2016

Securities

acquired

after 1 July

2016

Filer

Non

Filer

Filer Filer

Less than 12 months
15% 18% 15%

15%

12.5% 15%

12.5%

10 %

Equal or more than 12 but
less than 24

12.5% 16% 12.5%

Equal or more than 24 but
less than 48 acquired on or
after July 01, 2013

7.5% 11 % 7.5%

More than 48 acquired on or
before July 01, 2013

0% 0% 0% 0%

0%

7.5%

Where the holding period
exceeds four years but does
not exceed five years

(^) 5%