Capital gain on transfer of shares

This query is : Resolved

anyuta modi (Querist)
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06 August 2012 Res. sir/mam,

Kindly reply me urgent of my following quary.

I have invested Rs. 15 lacs in Pvt. Ltd. Co. before 5 years from this date.The shares were issued at the face value. The Total Share Capital of the company is Rs. 90 Lacs and Share Premium is Rs. 200 Lacs. The Balance in Profit & Loss A/c. is Rs. 18 Lacs (Cr. Balance).
Now If I have to transfer the shares to other dirctor of the company at Rs. 25/- per shares then Capital Gain Tax will be attracted? If Yes, then the indexation cost will be considered or not? whether it is trated as LTCG and Exempted?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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06 August 2012 1. capital gain shall be attracted on the sale of such shares. Gain shall be Long term (LTCG).

2. Indexation benefit shall be available.

3. LTCG is exempt only if STT has been paid on the transfer, i.e., shares are sold through a recognised stock exchange.

Since in this case, shares must not have been listed, STT will not be applicable and accordingly gain shall not be exempt.

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