Tax of Capital Gain

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Finance Professional
275 Points Posted on 18 October 2021

If a private limited company buys shares of another private limited company. What is the tax implication if it is sold at a profit after 3 years?

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On 18 October 2021 at 11:43 Report
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Quick Summary
This discussion explores the capital gains tax implications for a private limited company selling shares of another private company after three years. It clarifies that a long-term capital gain (LTCG) will arise if the shares are sold at a profit. However, if the stake acquired is less than 10%, no capital gain tax is applicable as it's a private, unlisted company.

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Chartered Accountant
24588 Points Posted on 18 October 2021
LTCG will arise
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On 18 October 2021 at 12:26
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Profession Business
28246 Points Posted on 18 October 2021
If it's an acquisition ot is a different story.
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On 18 October 2021 at 12:55
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Finance Professional
275 Points Posted on 18 October 2021

acquired stake of 10%

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On 18 October 2021 at 14:39
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132 Points Posted on 18 October 2021
LTCG for seller
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On 18 October 2021 at 20:11
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ACCOUNT EXECUTIVE
33 Points Posted on 23 October 2021

No capital gain will Arise.. since its a Pvt. limited company..not a listed company.

 

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On 23 October 2021 at 17:07

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