I have sold some shares bought five years ago through the BSE. They have deducted securities transaction tax from the sale proceeds. As I have already paid the securities tax, will I get exemption under Section 10(38) of the I-T act?

G.C. Das, via e-mail

Since you held the shares for more than a year, they will be treated as long-term capital assets. Hence, transfer of capital assets will lead to long-term capital gains. But, under Section 10(38), if such transaction is covered by securities transaction tax, long-term capital gains from the transfer of equity shares will not be chargeable to tax.

Consultancy expenses

My daughter is working in an IT firm as a consultant and she draws consultancy fees only. Consequently, she gets Form 16A and not Form 16. She files Form ITR 4. While filling up the form, in part A, P&L, Section 51, what is the amount that can be deducted under the head “expenses”?

G.M. Saha, Calcutta

The profit & loss section of part A of Form ITR 4 is applicable where regular books of account of a business or profession are not maintained. Now, section 51c in your case will include expenses incurred by your daughter for earning the consultancy fee. This may include conveyance expenses, assistant or staff salary, depreciation on equipment (for example, computer used for the purpose of consultancy) and telephone/mobile expenses, among others.

Eligible for exemption

I am a senior citizen. I own a flat where I am residing and and co-owner of another flat that was purchased for Rs 37 lakh in February 2013, fully utilising the sale proceeds of Rs 7 lakh from a plot of land purchased in August 1993 for Rs 10,000 and my own superannuation funds. What will be my long-term capital gains?

S. Mitra, via e-mail

As you have fully utilised the sale proceeds of Rs 7 lakh, you are eligible for exemption from long-term capital gains under Section 54F of the I-T act. The relief is applicable if the assessee has purchased within one year before the date of transfer or constructed within three years after the date of transfer a residential house.

If you have any queries about investing or taxes or a high-cost purchase you are planning, mail to: btgraph@abp.in, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001.