28 June 2014
1. as long as the shares are sold at the FMV computed under Rule 11U/11UA, there are no implications for the buyer.
2. with regards to the sellers, the transaction is a simple long term capital asset chargeable to tax. you need to compute the indexed cost of the shares and deduct the same from the consideration to arrive at LTCG. the same shall be then taxed at 20%.
28 June 2014
profit on sales of shares calculate under the capital gain head if it hold more than 12 month then calculate long term capital gain. as follows: sales proceeds - purchase price X selling year index /purchase year index = gain on sales of shares. it is taxable @ 20% .
shares holding period less than 12 month then calculate short term capital gain and indexation benefit not available. and gain include in your income tax will pay accordingly .
assesse in long term case can take benefit u/s 54F for residential house.
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