17 December 2010
Mr. X and Mr. y are directors in a private limited unlisted company in the ratio 9:1. Now after 16 years they have sold off their all shares to Mr. Z who will arry on the business of company. Would Mr. X and Y be liable to CG tax? if yes, how it will be calculated? What will be the exemptions available to them. Also, Mr. Y is a salaried employee in another company xyz. What would be his tax implication?
Thanks for your reply. Further to my query, if the assessee wants to avail the exemption u/s 54F and instead of purchasing a new residential house, he repays his home loan taken 7 years ago. Will the exemption be available to him? Also, will the indexation benefit be available in computation of LTCG?