Capital gain on sale of shares

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Viral Jethalal Saliya (Querist)

11 February 2015 Dear Sir,

I have Purchased Shares of Private limited company on 02/04/2007.

on 10/03/2008 i have received advance amount against sale of such shares.

on 03/05/2008 i have received final payments for sale of shares.

Transfer deed has been made on 05/05/2008 also on MCA site transfer of shares booked on 05/05/2008 only.

My question is
1) Is advance received can be consider as sale & Gain can be consider as STCG ??
or it is LTCG ??

pls if any such case law is available then forward that also

Mohit Singla

Mohit Singla (Expert)

11 February 2015 As per section 145 of IT Act, Cap gain are taxable on cash basis which means gain are
taxable in the year of receipt of actual money.
So money received in Year 2007-08 should taxable in AY 2008-09 and rest in the next AY.

Viral Jethalal Saliya

Viral Jethalal Saliya (Querist)

11 February 2015 But Sir my Transfer of assets has not been taken place as all the risk,profits of assets are still with me till 05/05/08.

also in section 145 they are talking abount business profits & other sources income

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