Tax on Sale of Startup - amt rcvd in Installments

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  1. bedese

    bedese New Member

    Hello,
    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
     
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