01 August 2014
Dear experts, Mr. X was offered in FY 2010-11 ESOPS of 100 Shares of unlisted company valued by them @ 1000/=. The company has deducted TDS @30%. Mr. X has sold these shares in 2013-14 FY for 200000/- to Mr.Y in a private transaction as shares are unlisted. My queries are: 1. What will be the cost of acquisition - 1000/- per share or 700/- per share? 2. What will be the capital gains? 3. Will indexation can be done for the same? What rate is it to be taxed?
03 August 2014
Dear Mr. Bajaj, Section 112 (1) (iii) says that gains on unlisted shares after 01.04.2012 will be taxed @ 10% and no indexation will be allowed. The newly added tax relief provision u/s 112 as per Finance Act 2012 is as under : In section 112 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2013,— (A) in clause (c), for sub-clause (ii), the following sub-clauses shall be substituted, namely:— “(ii) the amount of income-tax calculated on long-term capital gains [except where such gain arises from transfer of capital asset referred to in sub-clause (iii)] at the rate of twenty per cent; and (iii) the amount of income-tax on long-term capital gains arising from the transfer of a capital asset, being unlisted securities, calculated at the rate of ten per cent on the capital gains in respect of such asset as computed without giving effect to the first and second proviso to section 48.”;
CAclubindia
