Income TAx Capital Gains
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 December 2010
say
Mr.A holding 95% of shares in company X
and 85% in comapny Y. Now Mr.A willing to sold 20% stake in Company X at 20/- per share. The market value of share of x is 200/- and book value is 80/-.
Whether is it possible under IT Act, and what r the implications and how to compute capital gains.
Mr.A holding 95% of shares in company X
and 85% in comapny Y. Now Mr.A willing to sold 20% stake in Company X at 20/- per share. The market value of share of x is 200/- and book value is 80/-.
Whether is it possible under IT Act, and what r the implications and how to compute capital gains.
CA.Madhusudan B.P.
(Expert)
25 December 2010
Whether the share are listed in stock exchange ?
How would you determine the matket value of the shares are Rs.200?
If the shares are listed in stock exchange, then the prices are as per the exhcange i,e. you will not sell the shares @ 20, if the rates quoted are Rs.200..... right? Also if the holding period is more than 12 months,(STT charged on listed shares) then no need to compute or pay Capital gain tax as it is exempted u/s 10(38)
On the other hand if it is not listed shares, it (share price)shall be determined by the firm of Chartered Accountants & is not arbitatory figure.
How would you determine the matket value of the shares are Rs.200?
If the shares are listed in stock exchange, then the prices are as per the exhcange i,e. you will not sell the shares @ 20, if the rates quoted are Rs.200..... right? Also if the holding period is more than 12 months,(STT charged on listed shares) then no need to compute or pay Capital gain tax as it is exempted u/s 10(38)
On the other hand if it is not listed shares, it (share price)shall be determined by the firm of Chartered Accountants & is not arbitatory figure.
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