if an individual redeems his shares/ units after a period of more than 12 months, is it taxable or exempt???..
1 Replies
parthasarathy
(Practising, C.A)
(188 Points)
Replied 30 January 2008
Technically, redemption of shares means...the company has bought back your shares and paid you off a certain amount of money.
...The amount received on such redemption is the sale consideration...for this transaction...........
If the holding of shares are more than 12 months....the gain is long term and not taxable.........but if the holding period is less than 12 months....you are liable for s.t.c.g tax @ 10 %..
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