is any body tell me wat is the tax treatment of Buy back of Share
1 In the hands of Company
2 In the hand of Share Holder
CA. Praveen Gupta (CA ) (346 Points)
24 January 2010is any body tell me wat is the tax treatment of Buy back of Share
1 In the hands of Company
2 In the hand of Share Holder
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 25 January 2010
its taxable in the hands of the shareholder as CG
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 25 January 2010
| Originally posted by : Mukund | ||
 |
its taxable in the hands of the shareholder as CG |  |
I am agree with mukund and further deduction under section 48 are also allowed on the capital gain.
Amir
(Learner)
(4016 Points)
Replied 25 January 2010
Dear Mukund,
Treatment Under Income Tax Act in case of Buy Back -
1) Company - No TREATMENT SINCE REDUCTION OF SHARE CAPITAL IN TERMS OF SEC 77 A OF THE COMPANIES ACT & REDEMPTION OF PREFRENCE SHARES ARE NOT TREATED AS DEEMED DIVIDEND U/S 2(22)
2) Shareholder- Capital Gain shall be computed u/s 46A
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