capital gain qyerry......

if company allotes shares to its employee under ESOP than these transaction will not be covered under section 47 of income tax act (i.e. not cover in transaction not regarded as transfer) and it is subject to capital gain but shares issued by company is not capital assets for it, so why will capital gain be arise in the hands of company???plzz explain in detailss and thanx in advance...

Replies (3)

SHARE IS THE SMALLEST UNIT OF CAPITAL IN A CO.

 

i.e PART OF THE CAPITAL  OF A COMPANY

mr. dheeraj....

plzzz explain ur answer...

CAPITAL ASSET INCLUDES ALL TANGIBLE PROPERTY WHICH CAN NOT BE EASILY CONVERTED INTO CASH & USUALLY HELD FOR THE LONG PERIOD OF TIME

 

& SHARES OF THE CO. ARE PARTS OF ITS CAPITAL, USUALLY HELD FOR LONG PERIOD OF TIME

 

THATS Y I SAID THIS

 

THIS WAS MY OPINION.

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