How is STCG and LTCG are calculated for FY 2019-20 for Bonds where STT is not paid.
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In the case of Bonds where STT is not paid, below is the tax treatment:
- STCG - slab rates
- LTCG - Lower of the following
20% with indexation
OR
10% without indexation
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Thank you very much for your response.
Is indexation as clarified by you is grandfathering clause or any indexation list is published ?
Regards.
S Sinha
Grandfathering rule applies to the Equity Shares and Equity Mutual Funds on which STT is paid and are bought on or before 31/01/2018.
The Indexation in the case of bonds would be as per the CII (Cost Inflation Index) List published by the Income Tax Department. Indexed Cost of Acquisition is calculated using the following formula:
Cost of Acquisition (Purchase Price) * [CII of Year of Sale / CII of Year of Purchase]
You can read more about indexation here - Capital Gain Tax : A Complete Guide - Learn by Quicko
You can view the list of CII (Cost Inflation Index) here - https://www.incometaxindia.gov.in/Pages/charts-and-tables.aspx
You can also use the CII Calculator of Income Tax - https://www.incometaxindia.gov.in/Pages/utilities/Cost-Inflation-Index.aspx
For any further queries, write to us on [email protected]