Capital Gain Tax on company shares

Hi, My company(USA listed, having tax treaty with India) gives shares to the employess at discounted rate. I am eligible for capital gain tax on those shares.

I have a property for which I have an installment due to the builder, can I invest the capital gain in that property to save income tax on that capital gain.

asked Mar 20 '12 at 19:06 by vsangal 1122

You can save income tax on capital gains (only if company shares have been held by you for more than three years after purchase) u/s 54F or 54EC.

To save income tax fully, under 54F you can invest whole sale consideration amount into a residential house property. Possession of new property must be taken within two years of stock sale.
Also you should not be owning more than one residential house property at the time of stock sale.

To save income tax fully u/s 54EC, you can invest whole sale consideration into capital gain bonds within six months of sale.

answered Mar 22 '12 at 00:28 by Pankaj Batra 5.2k320

Thanks a lot Pankaj....
(Mar 22 '12 at 12:49) vsangal

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Asked: Mar 20 '12 at 19:06

Seen: 1,719 times

Last updated: Mar 22 '12 at 12:56