Hi All,
XYZ Co. Pvt. Ltd. has 4 promoters, each holding 25% Stake. The company's Capital is 1 lakh.
Now, Private Equity wants to invest in the above company and they will take 15% Stake by paying Rs. 10 crores.
Whether the Promoter, who give up their stake will be liable to Capital Gain in the above case?
If yes, what will be the liability of each of the Promoter assuming, all give up equal stake to Private Equity?
Thanks
Ya capital gain will be applicable. Cost of acquisition of the shares shall be reduced from the consideration received.
chargeable,
why not issue shares at premium??
agreee with above ,applicable capital gain
Thanks Praveen,
Can you please share the section of capital gain? Also, if you can share any specific case study related to the above question?
Taxable Under Section 45
CAclubindia
