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?
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.
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.
CAclubindia
