29 March 2010
I have sold my shares in a company (Purchase cost was Rs. 10) in the year of 2007 @ Rs. 100 each. I have received Rs. 50 at the time of sale and for rest of the amount of Rs. 50, i have received an assurance of another company's share at the time of IPO in future. The IPO of that company has come in the year of 2010 and i have received the share @ Rs. 50. Now question is that whether this capital gain is taxable in the year of 2007 or in the year of 2010?
30 March 2010
Well, the sale of shares has occurred in 2007 with sale consideration of agreed value of Rs.100. So capital gain would be of year 2007 taking sale consideration of Rs.100. In 2010, new shares are issued at Rs. 50 . So its like purchase of new shares in 2010 at Rs. 50.
CAclubindia
