Long term capital gain tax, money is received as installment

[bedese sasi]

Hello,

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

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

now we got a deal from another bigger organization to buy out 100 % equity in our company.

now to the question, the money is given to us as installment over a period of 2 years.

how should i pay my capital gains tax ?

everything upfront ?

or as and when i receive the installment ?

Thank you very much

AI Summary

Capital Gains Tax on Short-Term Share Sales: Liability on Transfer, No Exemptions for Unlisted Shares, Installment Payments Irrelevant. A discussion forum addressed a query about capital gains tax on the sale of shares in a private limited company, where payment is received in installments over two years. The shares, held for less than three years, are classified as short-term capital gains (STCG). Responses clarified that tax liability arises at the time of share transfer, regardless of whether payment is received in full or in installments. Since the shares are unlisted and no Securities Transaction Tax (STT) was paid, there are no exemptions, and normal tax rates apply.