tax on share sales in mergersaccording to the terms of the scheme of amalgamationmergerdemerger of companies the sale proceeds of fractional share entitlement is given to the shareholder by the respective companies i want to know if any capital gains tax is payable in such cases as securities taxation tax stt is not charged on these transactions by the companies sk ghoshyes you are right since stt is not paid on such transaction the longterm gains will be taxable tax on dividend from debt fundswill the dividend from debt funds be taxfree in the hands of investors under the new dtc regime also will the longterm capital gains be taxed at 20 with indexation and at 10 without indexation vinayak hari gadre under the proposed direct taxes code dividends from nonequityoriented funds will be taxable in the hands of the recipient the dividend distribution tax on dividends declared on nonequity funds is done away with in the code longterm capital gains will be taxed as per the applicable slab rate the benefit of indexation will be available on longterm capital gains no tax relief on govt compensationdue to the construction of a rail overbridge the state government had acquired part of my plot in 2008 and paid compensation after deducting the taxes can i seek tax relief other than capital gains as the transaction was not initiated by me for my gains sridharno you cannot claim any relief on such grounds the gains will remain taxabletax on us citizens savings in indian currencymy son is a us citizen and he has some savings in indian rupees he is earning bank interest and capital gains from mutual funds investment against the rupee funds can he submit form 15g if his taxable income from rupee funds is less than the exemption limit for individual indians is he required to show his us income in if he files the return js arorano a nonresident cannot submit form 15g he has to make an application to the jurisdictional tax officer in form number 13 if the application is accepted the tax department will issue a certificate of nondeduction or deduction of tax at lower rate of tax at source such a certificate can be then be submitted with the bankmutual fund and he will then receive income from them without deduction of tax at source while filing his incometax return he may not show his us income in that return