Off Market Transfer of Shares

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Anshul Singhvi (Querist)
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03 January 2011 Suppose a XYZ ltd. transfer off market 50 shares of ABC ltd to CSP Investment(a partnership firm)

What would be the tax implication in the books of XYZ ltd and at what rate it would trnafer,whether cost would be considered as tranfer price

Kindly revert back

sivasankar

sivasankar (Expert)
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04 January 2011 Sir,
If the shares are listed then you have two options to calculate LTCG.
The least is taxable
1)10% on LTCG without indexation
2)20% on LTCG with indexation.

If shares are unlisted then flat 20% with indexation

In case of off market transfers if it is STCG then it will added to the normal income and taxed as per the income slab.