FCS Deepak Pratap Singh
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INCOME TAX QUESTIONS ANSWERS SERIES PART -III Sub: Section 115QA Section 115F of the Income Tax Act, 1961 Dear Friends, Today we are going to consider two problems based on provisions of Section 115QA and Section 115F of the Income Tax Act, 1961 respectively. PROBLEM 1 Mr. X, a
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FAQ :
Under Section 115QA, a domestic company distributing income through share buybacks must pay income tax at 20%, plus surcharge and cess, totalling approximately 23.30%.
No, income arising to shareholders from a company's share buyback is generally exempted from income tax under Section 10(34A) to avoid double taxation.
An NRI can claim exemption on long-term capital gains from foreign exchange assets if they reinvest the net consideration in specified assets within six months of the transfer.
If the new asset is transferred or converted into money within three years of acquisition, the previously exempted capital gains become taxable in the year of transfer.
No, whether the shares are listed on a recognised stock exchange or not, the income to shareholders from a buyback is exempted under Section 10(34A), and the tax is levied on the company under Section 115QA.
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