Can we transfer the equity shares?
if yes, what's the taxability?
Menu
Share transfer taxability
Replies (4)
Quick Summary
If share transfer as sale then assessee Lible to pay tax either short term or long term depend on situation....but if capital assets (like share) transfer as gift no tax liability arise in the hands of transferor
Yes, equity shares can be transferred.
The taxability of the transfer of equity shares depends on whether the shares are listed or unlisted.
1. If the shares are listed, then the capital gains tax is applicable on the transfer of equity shares. The capital gains tax is calculated based on the difference between the purchase price and the sale price of the shares. Short-term capital gains (STCG) tax is applicable if the shares are held for less than 1 year and long-term capital gains (LTCG) tax if the shares are held for more than 1 year.
2. If the shares are unlisted, then the capital gains tax is applicable on the transfer of equity shares. The capital gains tax is calculated based on the difference between the fair market value (FMV) of the shares on the date of acquisition and the sale price of the shares.
Thank you so much
Share ,stocks and mutual fund are all capital asset.
Any sell or transfer of capital asset capital gain Short term or long term as the case may be.
If the shares are unlisted then it cannot be held or cannot be sold.
so it amounts to capital gain tax.
Any sell or transfer of capital asset capital gain Short term or long term as the case may be.
If the shares are unlisted then it cannot be held or cannot be sold.
so it amounts to capital gain tax.
Recent Topics :
- Is SAP FICO a good career option for finance and a
- Direct Cost booking
- TDS on Property Purchase Paid
- Cash Purchase Above ₹10,000, ITR/40A(3) Trea
- TDS on dividend to non resident shareholders
- Best CA Inter classes in Laxmi Nagar for Group 1?
- Gst refund
- Compliance under Society Act 1860
- Hi experts need help
- How to object stamp duty value if property is sold
Related Topics :
CAclubindia
