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 ?
CAclubindia
