30 May 2013
purchase shares when they were unlisted i.e in the year 1980. the shares where listed in year 2000, sold the shares in the year 2013 through Dmat.will there be any tax liability
30 May 2013
No tax liability as per sec 10(38). Sec 10(38) read that any income arising out of transfer of long term capital asset being equity share in a company be exempt, provided that, such equity shares are sold through a recognised stock exchange.
Therefore it is very clear that purchase through stock exchange is not relevant. What is relevant is the sale should be through recognised stock exchange. As in the above case all requirements are fullfilled therefore, such income is exempt.
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