Capital Gain-ESOP

978 views 7 replies

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?

Replies (7)

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.

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

 

And also how to indax the cost of acquisition?

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..

Indexation Shall apply, best way is to Multiply the capital Gain on date  of Sale at Buying Rate.

Dear Vidya,

you have to convert the buying and selling prices into india currency then

you have to aply indexation.

for indexing the cost of aquisition for Eg:

200 us dollars exchange rate on 31/3/09 say 42

200*42 = 8400

indexed cost would be  8422*582/492 the resultant amount would be indexed cost of aquisition

Note: figures i have taken is assumed.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details