Mr.X purchased 2700 shares @ Rs. 100 each amounts to Rs. 2,70,000 from an unlisted private company on oct 2009, and the same was allotted in oct 2009. The above shares were sold by him to a listed public company in Dec 2010 at an amount of Rs.14,00,000.This Rs. 14,00,000 is invested in shares of another private limited company. Does the profit received on the above sale of 2700 shares taxable? If taxable, under what head of income it is taxable and at what rate?
Profit is chargeable to tax under capital gain and tax rate applicable is 20%
Yes, Richa is right.
agree with above
YES MY FRIEND IT IS A TEXABLE PROFIT....
IT WILL BE A CAPITAL GAIN....& LONG TERM...BECAUSE HOLDING PERIOD IS MORE THAN ONE YEAR...
SO THAT,LONG TERM CAPITAL GAIN...
TAX RATE IS...20%....
RIGHT RICHA......
Agree with above
Ofcourse they are chargeble under(Short Term)Capital Gains @ Direct Slab Rate of 20% of such profit.
Oh sorry richa you are correct ...why because those shares were held by him for the period more then 12 Months so they will chrgeble under Long Term Capital Gains.
LTCG and tax rate 20% applicable
Aggarwal Sarawagi and Co
New Delhi
CA
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Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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