Buy Back of Shares
This query is : Resolved
01 June 2010
A shareholder holding 100 shares of a Listed Company at cost of Rs. 45/- per share
Pursuant to Buyback of Shares by the Company, sold those 100 shares to the Company at Rs. 120/- per share. AND STT IS PAID
He held the shares for a period of 4 years as on the date of Buyback.
Whether the Long Term Capital Gain arising to such shareholder shall be exempt u/s 10?
Or pursuant to delisting of the shares on buy back, considered as Capital Gain on unlisted shares
Pursuant to Buyback of Shares by the Company, sold those 100 shares to the Company at Rs. 120/- per share. AND STT IS PAID
He held the shares for a period of 4 years as on the date of Buyback.
Whether the Long Term Capital Gain arising to such shareholder shall be exempt u/s 10?
Or pursuant to delisting of the shares on buy back, considered as Capital Gain on unlisted shares
01 June 2010
The said sale will not be exempt u/s 10(38) as STT is not paid on the sale.
The gain will be taxable @ 10% without indexation or 20% with indexation whichever is lower at the option of the assessee.
The gain will be taxable @ 10% without indexation or 20% with indexation whichever is lower at the option of the assessee.
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02 June 2010
sir,
If STT is paid then?
Shall the capital gain be exempt?
And in case of Buyback the shares purchased by the company are STT paid or not
If STT is paid then?
Shall the capital gain be exempt?
And in case of Buyback the shares purchased by the company are STT paid or not
02 June 2010
If STT paid on sale of shares then long term capital gain exempt u/s 10(38)
In case of buyback STT is not paid and hence tax to be paid u/s 112 on the capital gains.
In case of buyback STT is not paid and hence tax to be paid u/s 112 on the capital gains.
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