APR Constructions Limited - Saffron Capital

6. In accordance with section 112, the tax on capital gains on transfer of listed shares, where the transaction is not
subject to securities transaction tax, held as long term capital assets will be at the rate of 20% (plus applicable
surcharge and „education cess and secondary & higher education cess‟) with the benefit of indexation and at the
rate of 10 % (plus applicable surcharge and „education cess and secondary & higher education cess‟) without the
benefit of indexation.
7. In accordance with section 111A, capital gains arising from the transfer of a short term asset being an equity
share in a company and such transaction is subject to securities transaction tax, the tax payable on the total
income shall be the aggregate of (i) the amount of income-tax calculated on such short term capital gains at the
rate of 15% (plus applicable surcharge and „education cess and secondary & higher education cess‟ ) and (ii) the
amount of income-tax payable on the balance amount of the total income as if such balance amount were the total
income.
8. In accordance with section 54EC, long-term capital gains arising on transfer of the shares of the company and on
which securities transaction tax is not payable, the tax payable on the capital gains shall be exempt from tax if the
gains are invested within six months from the date of transfer in the purchase of a long-term specified asset. The
long-term specified assets notified for the purpose of investment are bonds of Rural Electrification Corporation
Ltd. (REC) and National Highways Authority of India (NHAI). Investment in these specified assets cannot
exceed Rs. 50 lakhs during any financial year.
If only a part of the capital gain is so invested, the exemption would be limited to the amount of the capital gain
so invested.
If the specified asset is transferred or converted into money at any time within a period of three years from the
date of acquisition, the amount of capital gains on which tax was not charged earlier shall be deemed to be
income chargeable under the head “Capital Gains” of the year in which the specified asset is transferred.
9. In accordance with section 54F, long-term capital gains arising on the transfer of the shares of the company held
by an individual or Hindu Undivided Family and on which securities transaction tax is not payable, shall be
exempt from capital gains tax if the net consideration is utilised, within a period of one year before, or two years
after the date of transfer, in the purchase of a new residential house, or for construction of a residential house
within three years. Such benefit will not be available if the individual or Hindu Undivided Family
- owns more than one residential house, other than the new residential house, on the date of transfer of the
shares; or
- purchases another residential house, other than the new residential house, within a period of one year after
the date of transfer of the shares; or
- constructs another residential house, other than the new residential house, within a period of three years after
the date of transfer of the shares;
- the income from such residential house, other than the one residential house owned on the date of transfer of
the original asset, is chargeable under the head “Income from house property”.
If only a part of the net consideration is so invested, so much of the capital gains as bears to the whole of the
capital gain the same proportion as the cost of the new residential house bears to the net consideration shall be
exempt.
If the new residential house is transferred within a period of three years from the date of purchase or construction,
the amount of capital gains on which tax was not charged earlier, shall be deemed to be income chargeable under
the head “Capital Gains” of the year in which the residential house is transferred.
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