25/02/2019
Capital gain on purchase by a company of its own shares/securities (Sec. 46A] :-
Section 46A was inserted with effect from the assessment year 2000-01. It provides that any consideration received by a shareholder (or a holder of other specified securities) from any company on purchase of its own shares (or other specified securities) held by such shareholder (or holder of other specified securities) shall be chargeable to tax on the difference between the cost of acquisition and the value of consideration received by the shareholder (or by the holder of securities), as capital gains. The computation of capital gains shall be made in accordance with the provisions of section 48.
“Specified securities" includes employees’ stock option or other securities as may be notified by the Central Government.
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