Budget2018:Howdoesitaffectus

The rest of the gains (from 31st January till date of sale) will attract tax at the flat rate of 10% without indexation. If the sale price is lower than the cost as on 31st of January, 2018, then in effect, there would be no capital gain.

The following table details the various scenarios that may emerge. In Scenario I, since the result would be a long-term loss, this changes. The reason for this is two fold. Firstly, the tax (as you can see from the table) is applicable basically only to the difference between sale value and the cost as on 31st of January. So a major part of the capital gain would be exempted in any case. So there is absolutely no need to panic or take any hasty decisions. Secondly, there remains the fact that taxes will always be a myopic investors who cannot see further than their nose will react to the "perceived" bad news of having to pay tax and launch a frenzied sell off. Our sincere advice would be to step aside and watch this frenzy with amusement. For that is what it would be - an irrational panic driven hysteria. This hysteria will typically play out over the next two months since that is the time one has to avoid the so called 'tax' - if anything, you should use this artificial fall in prices to make some strategic purchases. After all, buy low - sell high is what it's all about.

So much about the markets - now moving on to other provisions. respect of LTCG earned from immovable property and not from any other asset – in other words, Sec. 54EC cannot be used anymore for say LTCG earned from sale of non-equity or (now equity) MFs / shares etc.