TCS buy back - Tax implications

lemondew

Well-Known Member
#1
What are tax implications if someone wish to tender his TCS shares on buyback.

The shares were purchased at IPO around 200 Rs I think Held for more than 1 year. Offered at 2850. So will there be any long term taxes.


http://economictimes.indiatimes.com...he-buyback-of-shares/articleshow/57339726.cms

This article talk about indexation and non indexation and so on. Can someone please explain clearly for the above example
 
#2
What are tax implications if someone wish to tender his TCS shares on buyback.

The shares were purchased at IPO around 200 Rs I think Held for more than 1 year. Offered at 2850. So will there be any long term taxes.


http://economictimes.indiatimes.com...he-buyback-of-shares/articleshow/57339726.cms

This article talk about indexation and non indexation and so on. Can someone please explain clearly for the above example
TCS buyback was through recognised stock exchange route and the STT is paid on the shares tendered,so if the period of holding is more than 1 year,the entire capital gain becomes a long term capital gain and no capital gains tax is payable by the investors.

Indexation etc comes into picture if the buyback is directly between the company and the investors and no recognised stock exchange is involved and STT is not paid.It is not applicable in case of TCS buyback.

Smart_trade
 

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