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 arises on the date of transfer; installments do not defer tax liability on share sales.
Tax liability arises on the date of transfer or on entering a binding sale contract regardless of installment payments. If the entire equity is transferred in one conveyance, the whole capital gain is taxable then; if transfers occur in parts tied to installments, each part is a separate transfer and its holding period determines whether it is short term or long term. For the facts given-unlisted private company shares held about one year and STT unpaid-the gains are short term and taxed at normal rates.