A Individual made a software and sole it to a company for a consideration of shares? Will the individual liable to pay tax on the software he sold or will he be taxed when he sell the shares of the company ???
01 May 2012
There are two aspects. 1. The revenue from the sale of the software shall be taken to be at the fair value of shares. So revenue is recognised today.
2. The shares shall be investment of that individual. When he sells those shares in future, capital gain shall be computed accordingly.
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