Income Tax--Capital Gains

Sale of Shares and Then Buy Back Thereof--A Case Study

Srivatsan Ranganathan

A case study is presented hereunder on sale of shares and their subsequent buy back alongwith related implications post Finance (No. 2) Act, 2024.

The lead characters of our case study are --

-- Indiana Private Limited

-- Jones Private Limited

-- Crusade Private Limited

-- Destiny Private Limited

-- Dial Private Limited

-- Temple Private Limited later on gets converted into LLP as Temple LLP

All 6 entities are group companies/related parties/resident corporates.

Indiana Private Limited invested the issued capital of the following group companies on 12th April 2009.