buy back of listed shares
I am Supriya (94 Points)
28 July 2018
If there is buy back of listed shares, do the shareholder get exemption of LTCG?
2 Replies
CA Sunil Kumar
(Chartered Accountant)
(4524 Points)
Replied 29 July 2018
If shares of a listed Company are bought back through a recognised stock exchange, the tax implications are as under:
1. Shareholders would be entitled to the benefit of Exemption under Section 10(38) of the Income Tax Act on long-term capital gains arising on account of buy-back, provided STT (securities transaction tax) is paid on the transaction
2.Long term capital gain exempt u/s 10(38) upto Rs. 100000/- if STT paid at the time purchase of these shares from RSE.
3. Short term capital gains taxable u/s 111A @ 15%.
1. Shareholders would be entitled to the benefit of Exemption under Section 10(38) of the Income Tax Act on long-term capital gains arising on account of buy-back, provided STT (securities transaction tax) is paid on the transaction
2.Long term capital gain exempt u/s 10(38) upto Rs. 100000/- if STT paid at the time purchase of these shares from RSE.
3. Short term capital gains taxable u/s 111A @ 15%.
saurabh sawlani
(Self employed )
(2191 Points)
Replied 29 July 2018
DOMESTIC COMPANY BUYS BACK UNLISTED SHARES THE SHAREHOLDER SHALL BE EXEMPTED U/S 10(34A)
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