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Capital gains on buy back by unlisted company

Tax queries 356 views 1 replies

A an individual having salary income.recd shares from an unlisted company B. B gives Loan for purchase of the unlisted shares to A employee of the companys sister concern.  B decided to buy back the shares after 3 months.

A gets the proceeds  from the shares . and pays back the  loan taken from B to buy the shares   with interest

In the case of A

1. is the gains on buyback of the shares is chargeable to tax under short term capital gains?

2. whether the interest paid on the loan can be deducted from the gains made on buyback?

3. where in itr2 should the details of such capital gains be shown?

 

Replies (1)

please  refer  section 10(34A) of the the Income tax act 1961 ,  Its  exempt income as per this section  in case of buy back  of shares  , . however please   take more opinion  in this regard . 

Good Luck . 


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