Capital Gain on sale of shares holding

Hi experts,

We have Group of companies and one of our company sale out last year. ( Nature of sales: Buyer of the company transfer amount (Rs )of shares to direct shareholder )

Now capital gains arise in the hand of shareholders. so please suggest to me how to account received amount in the bank and how can I calculate the capital gain
Replies (4)
Quick Summary
This discussion clarifies how capital gains tax applies when shares in a company are sold, with the proceeds going directly to the shareholders. It explains that the tax liability rests with the shareholders, not the company whose shares were sold. The advice covers calculating gains, considering indexation benefits for long-term capital gains, and potential exemptions for listed entities under specific conditions.

As rightly mentioned in your query, the gains arising from sale of shares will be taxable in the hands of the shareholder(s) and not in the hands of company whose shares are sold.

I believe, you are looking at taxation from the perspective of seller (i.e. shareholder). In this regard, please note that if the company (whose shares are sold) is a listed entity and the gain is less than INR 1L and is held for more than a year, you can claim exemption. If not, then the gain will be taxed as long term capital gains. You can consider claiming indexation benefit. For computing capital gains, you need to apply following formula:

Sales Consideration

(-) Cost of acquisition (if held for more than 1 year / 2 year, indexed cost of acquisition)

Capital Gain / (Loss)

 

Thanks for sharing your experience
can provide me an index chart for computation of LTCG
and if you have any example for valuation of the LTCG related to my query, please

The formula is already mentioned in my earlier reply

Got it
Thanks

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