Vest share repurchase

U/S 46A It will be a LTCG if shares are listed on recognised stock exchange.

If Shares are unlisted then it will be exempted in the hands of an employee and the company will be liable to pay additional tax @ 20% on difference between consideration paid for buyback of shares and consideration recieved while issuing shares u/s 115QA.

Please note that as per amendment made in Finance Act(no.2)2014, all unlisted shares if held for less than 36 months then it will be treated as short term capital asset. However in case of listed shares 36 months will be substituted by 12 months.