09 July 2010
One of the salaried person was alloted shares of the Employer company. This company is listed in NYSE and same were the shares. These shares were alloted on Stock Accretion Scheme. i.e price of the shares on the date of the vesting was recorded by the Stock Broker and when the employee sold the shares, the amount in excess to the allotment price was paid to the employee and the remaining amount was paid to the company.
I need to know what is the position of capital gain i.e LTCG and STCG. As the transaction were made through NYSE, in the transaction statement there is no such charges like STT. Also STT is applicable in INDIA, so same may not be applicable in NYSE. Whether he will get the benefit of sec. 111A in STCG and section 10(38) in LTCG if not then what will be the position of Income Tax.
09 July 2010
Yes u had said it correctly since STT has not been paid the benefit of Section 10(38) & Section 111A is not available on the same.
The same will be liable for tax at the normal rates of capital gains as applicable to sale of shares of a non listed company i. e. LTCG is 20% after getting indexation and STCG is taxable at slab rates.
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