Capital gains tax

yes
 

they have sold shares ,capital gain/loss will attract in their individual returns

capital gain will attract if they sold it on higher values

but normally these types of shares r sold at par so usuaaly capital loss comes

Section 10(38) of the Income tax Act ,exempts following income: (38) any income arising from the transfer of a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund where— (a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and (b) such transaction is chargeable to securities transaction tax under that Chapter : 44[Provided that the income by way of long-term capital gain of a company shall be taken into account in computing the book profit and income-tax payable under section 115JB.] Explanation.—For the purposes of this clause, “equity oriented fund” means a fund— (i) where the investible funds are invested by way of equity shares in domestic companies to the extent of more than 45[sixty-five] per cent of the total proceeds of such fund; and (ii) which has been set up under a scheme of a Mutual Fund specified under clause (23D) : Provided that the percentage of equity shareholding of the fund shall be computed with reference to the annual average of the monthly averages of the opening and closing figures