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Capital Gain-ESOP

Vidhya (111 Points)

06 January 2010

Please help me in the following case

A friend of mine (resident individual)is allotted 2000 shares on31/03/2004 for 200 US dollars (concessional price )by his company which are listed in LSE .The same has been sold by him on 12/11/09 .What is the LTCG and whether indexation applies?

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7 Replies

Amir (Learner) (4016 Points)
Replied 06 January 2010

Dear Vidhya,

1)CAPITAL GAIN WILL ARISE IF HE IS A RESIDENT & ORDINARILY RESIDENT IN INDIA AND BENEFITS OF INDEXATION WILL BE ALLOWED..

2) CAPITAL GAIN WILL ARISE EVEN IF HE IS NOT ORDINARILY RESIDENT IN INDIA IF CONSIDERATION IS FIRST RECEIVED IN INDIA BUT AGAIN BENEFIT OF INDEXATION WILL BE ALLOWED.

Vidhya (111 Points)
Replied 06 January 2010

What should be taken as sale consideration?What will be the cost of acqusition which has to be deducted?

Vidhya (111 Points)
Replied 06 January 2010

And also how to indax the cost of acquisition?

Amir (Learner) (4016 Points)
Replied 06 January 2010

Dear Vidhya,

The ideal way is to compute the Capital Gain(AFTER INDEAXATION) in Dollors and then convert the GAIN into Rs. BASED ON THE BUYING RATE PREVAILING ON THE DATE OF SALE..