Public to Private: Capital Gains Tax Implications on Share Sale in 2024

Ans: Assuming sales consideration is 22 crs then you will get the exemption to the extent of 1/22.

Ans: 01. Considering receipt of Rs.37,50,000.00 as Sale of your share in property/ premises, it would be LTCG in this case.
02. Amount of LTCG without Indexation is Rs.36,02,000.00 (Sale Rs.37,50,000.00 Less Cost Rs.148,100.00). Tax @ 12.50% is Rs.4.50 lakh app.
02. Amount of LTCG with Indexation is Rs.32.12 lakhs (Sale Rs.37,50,000.00 Less Cost Rs.5,37 lakhs {Index 100/363}). Tax @ 20.00% is Rs.6.40 lakh app.
03. You may go for the first option & plan your tax liability. You can invest in residential property to save LTCG tax.
04. Other option to save tax is to purchase Capital Gain bonds. However, investment in Real Estate is always better than other investment.
Most welcome for any further clarifications. Thanks.

Ans: Hi,

You cannot set off your home loan with LTCG to avoid tax.
You will have to pay 12.5% tax on the entire gain amount. Only 1.25 lakhs will be exempt. Means total taxable value will be 73.75 lakhs i.e. tax of 9.21 lakhs will be payable by you.

However investing the entire amount for buying a residential property can save tax u/s 54F for you. You will have to do this in a time frame of 2 years after the sale of shares.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Ans: Indian residents have long-term capital gains from US stocks when the holding period is more than 24 months (or 2 years)
Long-term capital gains are taxed at 12.5% (post 2024 budget, earlier it was 20%).

You can look at diversifying your portfolio since US stock prices are at an all time high and Indian markets have been consolidating for the last 15 months, so good time to invest some monies in India from a 5 year point of view.

Please note that these suggestions are based on your stated goals and the information you provided. It is always a good idea to consult with a financial advisor in person to better understand your risk tolerance, time horizon, and specific financial goals.

Do let me know your views on this on my website or on my LinkedIn profile, attaching the link :
https://www.slwealthsolutions.com/