Ltcg exemption in case of listed shares - off market

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2012 Dear sir,

Whether LTCG exemption could be claimed for listed shares sold through private arrangement / inter se transfer among promoter group through off market method?

If not possible let me know other alternative ways to claim LTCG.

Kindly suggest me...!

Regards,

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 February 2012 For getting exemption of LTCG.- the requirement is payment of Securities Transaction Tax. In off market transaction if STT is not payable, such LTCG becomes taxable.
.
The best way is to enter the transactions in
a recognised stock exchange.

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2012 Sir,

THank you for your reply. I have identified purchaser which means its kind of inter see transfer among promoter group. How to execute this sale so that LTCG exemption become effective?

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CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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04 February 2012 You may get deduction of LTCG by investing in mode specified under section 54EC.

Investments can be made in specified bonds of NHAI or REC within 6 months of date of transfer of shares. These bonds are redeemable after 3 years. The maximum amount that can be claimed as deduction is Rs. 50 lacs.