Jan
I had sold few shares of a company in 2007-08 after holding the shares for more than 10 yrs and invested part of it while purchasing residential flat. shall i get exemption under income tax? if so what extend and under which section of income tax of india.
Answer:
If you sell shares after 10 years, then the gains are Long Term Capital Gains and they are tax free. You need not pay any tax at all.
When you sell a house or flat or a plot after 3 years of holding, then those gains are also capital gains which are taxed @20% flat rate (On indexation gains). For these gains you have to pay tax or deposit the gains in any Capital gains bonds or buy a flat or house to avoid payment of tax. This is not in the case of shares long term capital gains.
You can just forget about tax on shares.
Answer:
The whole amount of the capital gains on sale of the shares would be exempted from tax not because you invested in the house but because it is a long term capital gains transaction.(It is not necessary to invest in a house now)
Just check whether the broker deducted the securities transaction tax (STT), as it is necessary for claiming this exemption.
Answer:
Yes it was reinvestment of a Long term capital gain Under sec 54F.
Answer:
Mithrand has answere it correctly . 2 points for me.