Capital gains on company purchase of own shares: shareholder treated as having gain equal to difference between cost and consideration. Where a shareholder or holder of specified securities receives consideration from a company for purchase of its own shares or specified securities, the difference between the cost of acquisition and the consideration received is deemed to be the capital gains of that shareholder or holder in the year in which the company purchases those shares or securities, subject to the provisions of section 48; 'specified securities' has the meaning given in the Explanation to section 77A of the Companies Act, 1956.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital gains on company purchase of own shares: shareholder treated as having gain equal to difference between cost and consideration.
Where a shareholder or holder of specified securities receives consideration from a company for purchase of its own shares or specified securities, the difference between the cost of acquisition and the consideration received is deemed to be the capital gains of that shareholder or holder in the year in which the company purchases those shares or securities, subject to the provisions of section 48; "specified securities" has the meaning given in the Explanation to section 77A of the Companies Act, 1956.
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