sejal architectural glass limited - Securities and Exchange Board of ...

10% of capital gains (computed without indexation benefits) or 20% of capital gains
(computed with indexation benefits) as increased by a surcharge and Education cess at an
appropriate rate on the tax so computed in either case.
8. As per the provisions of section 10(38), long term capital gain arising from the sale of
Equity Shares in any company through a recognized stock exchange or from the sale of
units of an equity oriented mutual fund shall be exempt from Income Tax if such sale takes
place after 1 st of October 2004 and such sale is subject to Securities Transaction tax.
9. As per the provisions of section 111A, Short Term capital gains arising from the transfer of
Equity Shares in any company through a recognized stock exchange or from the sale of
units of equity oriented mutual fund shall be subject to tax @ 10% provided such a
transaction is entered into after the 1 st day of October, 2004 and the transaction is subject
to Securities Transaction Tax.
10. As per the provisions of section 88E, where the business income of an assessee includes
profits and gains from sale of taxable securities, a rebate shall be allowed from the amount
of income tax equal to the Securities transaction tax paid on such transactions. However
the amount of rebate shall be limited to the amount arrived at by applying the average
rate of income tax on such business income as provided in the said section.
11. In accordance with and subject to the conditions and to the extent specified in Section
54EC of the Act, the shareholders would be entitled to exemption from tax on long term
capital gains (not covered by sections 10(36) and 10(38)) arising on transfer of their shares
in the Company if such capital gain is invested in any of the long term specified assets in
the manner prescribed in the said section. Where the long-term specified asset is
transferred or converted into money at any time within a period of three years from the
date of its acquisition, the amount of capital gains exempted earlier would become
chargeable to tax as long term capital gains in the year in which the specified asset is
transferred or converted into money.
12. In accordance with and subject to the conditions and to the extent specified in Section
54ED of the Act, the shareholder would be entitled to exemption from tax on long term
capital gains (not covered by sections 10(36) and 10(38)) arising on transfer of their assets
being listed securities or units to the extent such capital gain is invested in acquiring Equity
Shares forming part of an ‘eligible issue of share capital’ in the manner prescribed in the
said section.
13. In case of a shareholder being an individual or a Hindu Undivided Family, in accordance
with and subject to the conditions and to the extent specified in Section 54F of the Act,
the shareholder would be entitled to exemption from long term capital gains (not covered
by sections 10(36) and 10(38)) on the sale of shares in the Company upon investment of net
consideration in purchase / construction of a residential house. If part of net consideration
is invested within the prescribed period in a residential house, then such gains would not
be chargeable to tax on proportionate basis. Further, if the residential house in which the
investment has been made is transferred within a period of three years from the date of its
purchase or construction, the amount of capital gains tax exempted earlier would become
chargeable to tax as long term capital gains in the year in which such residential house is
transferred.
14. As per the provisions of Section 90(2) of the Act, the provisions of the Act would prevail
over the provisions of the tax treaty to the extent they are more beneficial to the Non-
Resident.
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