Capital gain query

CA Atihash Agarwal (CHARTERED ACCOUNTANT) (187 Points)

22 November 2011  

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.