Sale of shares
This query is : Resolved
24 February 2014
There is a long term capital gain on sale of Private limited Company shares. The shares are fully transferred to the buyer. The buyer paid 90% of the considerations in this financial year and promised to pay the balance in the next financial year on completion of certain conditions. (There is a chance of forfeiting a part of this 10% withheld amount if certain conditions are not satisfied)
Now our query is what would be the sale consideration in first year? Should be take 100% or 90%? If only 90% is taken in the first year as sale consideration, then can the assesse claim 54EC (exemption of investment in capital gains bonds) for both the years separately.
Now our query is what would be the sale consideration in first year? Should be take 100% or 90%? If only 90% is taken in the first year as sale consideration, then can the assesse claim 54EC (exemption of investment in capital gains bonds) for both the years separately.
26 February 2014
Please answer me urgently. It is most urgent. Have to plan for advance tax.
05 March 2014
100% amount will be treated as the sale consideration will be treated.
This is because capital gain is chargeable on accrual basis. It is NOT chargeable on receipt basis.
This is because capital gain is chargeable on accrual basis. It is NOT chargeable on receipt basis.
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26 April 2014
Thanks and sorry for the delay in reply
10 July 2014
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