Capital gain on transfer of shares
This query is : Resolved
anyuta modi
(Querist)
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?
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?
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.
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.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Amount transferred in HUF Account
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- GST input credit on commercial property
- Nursery business
- TDS on Dashcam rent and allied services
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Working on Gold wastage during Melting of old gold jewellery
- Capital Gains Tax on Inherited Mutual Fund
- Section 269ST applicability for capital introduced by partner to his partnership firm
- Intimation under section 245
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
