Holding period for long term capital gain for stock in singa
This query is : Open
24 April 2014
I have some shares in a privately held LLC (not listed on any exchange) in Singapore.
How long should I hold the shares after which they will be eligible for long term capital gain (as against short term)
How long should I hold the shares after which they will be eligible for long term capital gain (as against short term)
Nikhil Kaushik
(Expert)
24 April 2014
what is your tax residence status Pal? as such Singapore has abolished capital gains tax. however, if you are Indian resident, then you need to hold for more than 36 months to be eligible for long term capital gains.
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24 April 2014
I am an Indian resident.
The bigger story is this:
I had incorporated a company in India in 2009.
It raised VC capital in 2012 and in Jun 2013 a new company was incorporated in Singapore in which I have been given proportional shares.
I am now selling these shares in Singapore entity in July 2014. And want to understand if there is anyway to avoid the short term tax liability.
The bigger story is this:
I had incorporated a company in India in 2009.
It raised VC capital in 2012 and in Jun 2013 a new company was incorporated in Singapore in which I have been given proportional shares.
I am now selling these shares in Singapore entity in July 2014. And want to understand if there is anyway to avoid the short term tax liability.
Nikhil Kaushik
(Expert)
24 April 2014
prima facie, your tax liability on this transaction is basically cast in stone.
the DTAA is pretty clear on this. Any detailed advice is possible only after looking at the transaction structure with actual documentation.
the DTAA is pretty clear on this. Any detailed advice is possible only after looking at the transaction structure with actual documentation.
24 April 2014
The following article suggests that even for equity shares in unlisted company the holding period is 1 Year to qualify as Long Term Capital Gain.
https://marker.to/2OjL3A
Are the rules different for equity holding in India vs Foreign Companies ?
https://marker.to/2OjL3A
Are the rules different for equity holding in India vs Foreign Companies ?
Nikhil Kaushik
(Expert)
25 April 2014
the article is incorrect...please refer section 2(42A) of the Act.
25 April 2014
If I were to stay in Singapore for 7 months in this financial year. Can this tax be avoided ?
Does the stay outside India have to be for work or can it be for leisure also ?
Does the stay outside India have to be for work or can it be for leisure also ?
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