19 January 2021
History: My Client in india done one project on FY 2005-07 with foreign company, but that project was not successful and the company not given salary/remuneration to my client. But they are given 25,000 shares (Unlisted Shares) face value US$ 0.00001 total value USD$ 0.25 (imagine at this is a free of cost and if arise profit he get profit) .
Now, During December 2020, he sold his entire shares at US$ 0.54 to another foreign company, he get the consideration US$ 13,500 * INR 72.5 = total INR 9,78,750/-
Note: He is now working for salary, he get Annual Salary Rs.6,00,000.
My Question: 1. The Entire Amount INR 9,78,750/- is Taxable ? 2. This transaction is taxable under Capital Gain ? 3. Rate of Tax ? (Special Rate or Normal Slab rate) and Which Section deal this ? if Advance tax Payment requirement this ? 4. If this treated as Long Term Capital Gain, to Claim Exemptions Possible ? (NHAI Bond REC Bond)
5. he already submit the IT Declaration for FY 2020-21, his Taxable Salary Rs.4,50,000/ - (After Deductions of HRA and 80 C Investments), Salary also taxable ? (Rs.9,78,750 + Rs.4,50,000 he not expected the income of INR 9,78,750)
Dear Experts, Consultants and Students Please Guide me, please advice. Thanks in advance.
19 January 2021
10% capital gains tax payable on entire amount of 9,78,750. No exemption possible for sale of shares such exemption available for sale of property of house or land. File ITR and pay taxes.
CAclubindia
