2 replies on this article “Capital Gain”

1. BanyanFA says:

   March 23, 2012 at 2:38 am

   Hi Vijay,
   You have raised a very interesting question – often ignored by investors who opt for buybacks offered by the companies. The same gets applicable in your case as well if your delisted company’s share were bought by the company from you outside the stock exchange.

   Income Tax Act is very clear in terms of tax treatment of such capital gains – it is not tax free ! You have two options :
   1. With indexation benefit @ 20% capital gain tax;
   2. Without indexation benefit @ 10% tax.

   Please come back in case you need more clarifications on indexation.

   Regards
   BFA

   Reply
2. ashal jauhari says:

   March 22, 2012 at 4:29 pm

   Dear Vijay, had you paid any STT by surrendering the shares through stock exchanges for the Reverse book building?

   Thanks

   Ashal

   Reply

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