Our Pvt. Ltd. Co. issued Non Transferable Redeemable Pref.Shares to employee 15yrs ago. Employee died now, wife is legal heir. Whether Redempn to be paid now be treated as - paid to wife on behalf deceased employee or, shares be transmitted to wife and then redeemed ? If on behalf of deceased, then should LTCG be added to his salary as other income and TDS deducted? If so, then what rate of TDS on this LTCG - 20% or slab rate? If transmitted, then am I right that the LTCG be taxed in wife's hands in her personal return ?
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Taxation on Death of Employee
Replies (2)
Whether nominee was added in the records? If yes, transfer the shares to nominee account, & redeem in his/her name.
Nominee becomes owner of those shares. And Capital gains for the nominee, not deceased.
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