24 February 2014
There is a long term capital gain on sale of Private limited Company shares. The shares are fully transferred to the buyer. The buyer paid 90% of the considerations in this financial year and promised to pay the balance in the next financial year on completion of certain conditions. (There is a chance of forfeiting a part of this 10% withheld amount if certain conditions are not satisfied) Now our query is what would be the sale consideration in first year? Should be take 100% or 90%? If only 90% is taken in the first year as sale consideration, then can the assesse claim 54EC (exemption of investment in capital gains bonds) for both the years separately.
CAclubindia
