Profit on transfer of shares in pvt ltd company
This query is : Resolved
12 November 2012
Sir
One of my Clients who transferred his shares for Rs 10 Lakhs in a private limited company acquired by him during 2005-06 for Rs 50000 /. In this connection please advice the taxability of the profit in the hands of the transferor.
RGDS
Kindly note that the cost of acquisition is only Rs 50,000/- (FY 2005-06)and the sale consideration is Rs 10,00,000/-(FY 2012-13)
Thank You
One of my Clients who transferred his shares for Rs 10 Lakhs in a private limited company acquired by him during 2005-06 for Rs 50000 /. In this connection please advice the taxability of the profit in the hands of the transferor.
RGDS
Kindly note that the cost of acquisition is only Rs 50,000/- (FY 2005-06)and the sale consideration is Rs 10,00,000/-(FY 2012-13)
Thank You
12 November 2012
It is assumed that the transaction of sale is at arm's length.
The indexed cost of acquisition has to be ascertained. Naturally there will be a huge loss under the head LTCG and the said loss has to be treated in the manner laid down in the IT Act, 1961.
The indexed cost of acquisition has to be ascertained. Naturally there will be a huge loss under the head LTCG and the said loss has to be treated in the manner laid down in the IT Act, 1961.
Message likes :
1 times
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
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Under construction property in ITR
- Pass word to open justification report for Q1 for FY 2026-27
- Upload Level ValidationITR3Category of Defect B/D
- Booth for sales promotion
- Building tax payment deduction in rental Income
- New Garden in Place of Old Garden
- GST ON TRAVELLING BILLS
- F & O PROFIT REPORTING FOR AY 2026-27
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
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
