Income tax liability
This query is : Resolved
21 December 2013
Dear sir,
I have applied equity shares in a private limited company @Rs 500/-.However the break-up value is rs 10/-
1)What will be my liability if i subscribe?
2)If I sell these shares @Rs 500/-having break-up value of Rs 10/- each to other purchaser.What will be my Tax Liability?
I have applied equity shares in a private limited company @Rs 500/-.However the break-up value is rs 10/-
1)What will be my liability if i subscribe?
2)If I sell these shares @Rs 500/-having break-up value of Rs 10/- each to other purchaser.What will be my Tax Liability?
21 December 2013
if its private limited co then u need to apply rule 11U of income tax rules,1962
21 December 2013
But will my cost of acquisition be Rs 10/- or Rs 500/- or the fair market value of the shares
21 December 2013
cost of acquition is actual amount u paid for acquisition.
21 December 2013
Thank You Sir
21 December 2013
Tushar bhai I believe, Sandeep is asking for his personal tax liability.
Sandeep,
you tax liability shall depend on:
1. whether the said shares are listed or not.
2. for how long did you held these shares.
Share held for less than one year shall be taxable as short term capital gains
shares listed on stock exchange and for
which STT is paid, and held for more than a year - no tax.
unlisted shares and held for more than a year - long term capital gains.
Also, though not your concern, as Tushar bhai said, there may be company's tax liability too under Section 56(viia).
Sandeep,
you tax liability shall depend on:
1. whether the said shares are listed or not.
2. for how long did you held these shares.
Share held for less than one year shall be taxable as short term capital gains
shares listed on stock exchange and for
which STT is paid, and held for more than a year - no tax.
unlisted shares and held for more than a year - long term capital gains.
Also, though not your concern, as Tushar bhai said, there may be company's tax liability too under Section 56(viia).
21 December 2013
But sir what will be the income tax liabilty if i sell these shares
21 December 2013
Since the shares are of private company, the taxation shall depend on the holding period. Please ignore my earlier message as far as it relates to listed shares.
Once it is determined whether it is short term or long term capital gains, taxability can be finalised.
Once it is determined whether it is short term or long term capital gains, taxability can be finalised.
21 December 2013
It is for mor than 12 months then taxablity depends on the cost of acquisition,now will the cost of acquisition be rs 500/- or rs 10/-or FMV
21 December 2013
Yes the period of holding will decide whther its long term or short term and accordingly u need to calculate...i had ans as the earlier question under the impression from co point of view.
21 December 2013
then its long term capital gain and cost is the actual cost u paid for acquiring shares.
21 December 2013
Sandeep,
I hope cumulatively, your query is resolved now!!
I hope cumulatively, your query is resolved now!!
21 December 2013
Thank U all
21 December 2013
you are welcome.
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
- STCG....................................................
- Supply through E-commerce Operators
- Sales return eway bill
- TAN for Partnership
- Relief u/s Section 89
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- E way bill for tractors
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Taxation on LTCG for property sold after 24JUL2024
- TDS related Query_Liquidated Damages
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
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
