Ltcg treatment on sales of shares in pvt ltd co.

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This query is : Resolved

Gopal Khetan (Querist)

12 November 2014 Please guide, what would be the taxation for shares sold of a pvt ltd company held
for more than 3 years. Is there any new provision,wherein such sales of shares are treated at par with listed company shares and are exempt from any tax ?

Kindly guide.

Thanks !

Nikhil Kaushik

Nikhil Kaushik (Expert)

12 November 2014 no. exemption is available. you will have to pay tax on it like a normal LTCG. you can claim exemption under section 54EC or 54F though

Nikhil Kaushik

Nikhil Kaushik (Expert)

12 November 2014 no. exemption is available. you will have to pay tax on it like a normal LTCG. you can claim exemption under section 54EC or 54F though

Gopal Khetan

Gopal Khetan (Querist)

13 November 2014 The amendment to section 2(42A) of the I-T Act has changed the defincition of capital asset,it proposes that securities (other than a listed security) and units of mutual funds (other than equity oriented funds) [hereinafter referred to as 'Securities'] shall be regarded as short term capital asset where the same are held for a period of less than 36 months.So, does it mean that holding of more than 36 months will bring unliste d securities at par with listed securities and they will enjoy the same benefit that listed securities enjoy of ltcg exemption ?

Nikhil Kaushik

Nikhil Kaushik (Expert)

13 November 2014 the the definition has been changed for determining the long term or short term...not the taxation on the same. sale of shares of private limited company are not eligible for similar treatment to that of listed companies.

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