Capital gain query

Tax queries 428 views 1 replies

KINDLY ADVICE,

 

CASE 1.

Mr. X purchased shares of a Listed company in 2003-04 PHYSICALLY FROM SECONDARY MARKET as the shares were lying suspended in the stock exchange. 

Consider following cases:

 A.  Now these shares are sold in Demat form in Stock exchange and STT IS PAID.

what wud be the tax liability on the above transaction..

As per me, it should be LTCG and as stt is paid, it should be exempt.

 

B. These shares are given in the Open Offer to the promoters and NO STT PAID.

what is the tax treatment in this case.

 

CASE 2.

Shares were purchased from the Stock Exchange in 2005-06 and 06-07. STT WAS PAID and now given to the company under open offer.

what should be the tax treatment in this case.

 

kindly advice me on the above cases.

 

Replies (1)

if the STT paid at the time of transfer then the long term capital gain is exempt, otherwise it is taxable

in your cas1 A :STT paid at the time of sale means exempted because long term capital gain

in case 1B at the time of transfer if the STT is not paid then it is liable for tax

Case2: same as case 1B

 


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