Tax on Sale of Startup - amt rcvd in Installments

Share This Thread
  1. bedese

    bedese New Member

    This is a query regarding the Long term capital gain tax, where money is received in instalments

    3 of us friends started a private limited company and equally shared the equity.

    now we got a deal from another bigger organisation to buy out 100 % equity in our company.
    now to the question, the money will be given to us in 3 instalment over a period of 2 years.

    how should i pay my capital gains tax ?

    everything upfront ?
    or as and when i receive the instalment ?
    Thank you very much
  2. rudrabose

    rudrabose Active Member

    Tax would be levied at the time when the equity is transferred.

    If the equity is transferred in installments - tax would be levied in installments.
    If the equity is transferred in lump-sum - tax would be levied in lump-sum
Draft saved Draft deleted
Similar Threads Forum Date
Schedule to fill in ITR for sale of Flat Income Tax Apr 1, 2018
Query related to sale of property Income Tax Mar 8, 2018
How can buyer get refund of TDS paid when sale fell through Income Tax Feb 13, 2018
LTCG on sale of shares Income Tax Feb 2, 2018
TDS Rates on sale of Property - RONR Income Tax Jan 27, 2018