Can anyone please tell me -
Is long term capital gain on securities is exempt, if the securities were purchased under employees stock option plan?
1. STT is paid on the transaction.
2. The security is a listed transaction.
5 Replies
Ankit
(CA, CS)
(3064 Points)
Replied 20 September 2013
Yes Manvi,
The payment of STT is relevant tat the time of sale and not purchase.
Hence, if the sale was under payment of STT, the same will be exempt from Capital Gains Tax.
In case of any further query, you may ask
Manvi Mehrotra
(Associate Tax Consultant)
(88 Points)
Replied 20 September 2013
yes..thanx a lot ankit.
Yes..the stt is paid on the sale transaction.
so the shares recd under esop are exempt from capital gain(long term)..
can i apply indexation on the cost of purchase?
Ankit
(CA, CS)
(3064 Points)
Replied 20 September 2013
welcome Manvi,
but if the gain is totally exempt, why is it necessary to apply indexation?
Manvi Mehrotra
(Associate Tax Consultant)
(88 Points)
Replied 20 September 2013
You are right..thanks a lot..:)
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