Taxability of ltcg
This query is : Resolved
Guest
Guest
(Querist)
23 November 2013
My client has sold Shares of private limited company. There is LTCG.
I want to know whether LTCG on sales of PRIVATE LIMITED company is taxable at flat rate of 20% or any exemption is available under any section.
Since it is a private company, it cant be a listed company and its shares cannot be traded in a stock exchange.
Thanks.
I want to know whether LTCG on sales of PRIVATE LIMITED company is taxable at flat rate of 20% or any exemption is available under any section.
Since it is a private company, it cant be a listed company and its shares cannot be traded in a stock exchange.
Thanks.
23 November 2013
Indexation will be allowed.
.
You may refer Section 54F and Section 54EC, for getting exemption.
.
You may refer Section 54F and Section 54EC, for getting exemption.
Guest
Guest
(Querist)
23 November 2013
there is no exemption under those sections. I just want to confirm rate of tax i.e 20%
23 November 2013
Yes sir, rate of tax is 20% for LTCG.
23 November 2013
you may take 10% rate without availing Indexation benefit
23 November 2013
If you dont use indexation, then you can pay 10% tax on LTCG.
Rather you can work out tax liability with and without indexation and then choose the lower one.
Rather you can work out tax liability with and without indexation and then choose the lower one.
23 November 2013
Though as per proviso to section 112, 10% rate has been prescribed, but the same is applicable in case of listed securities or units or zero coupon bonds. In this particular case of Pvt Ltd Co shares, 10% rate is thus not applicable. Hope experts will agree with me.
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