XYZ Pvt. Ltd. had distributed income of ₹ 6 lakh to Rajesh for the reason of buyback of its shares (Not being listed on a recognized stock exchange) from him on 1st February, 2019. The amount of ₹ 6 lakh received by Rajesh in the A.Y. 2019-20 shall be
A. Taxable in full
B. Exempt u/s 10(34A)
C. Taxable @ 20%
D. Taxable at normal rate of tax
Answer:B
XYZ Pvt. Ltd. had distributed income of ₹ 6 lakh to Rajesh for the reason of buyback of its shares (Not being listed on a recognized stock exchange) from him on 1st February, 2019. The amount of ₹ 6 lakh received by Rajesh in the A.Y. 2019-20 shall be
A. Taxable in full B. Exempt u/s 10(34A) C. Taxable @ 20% D. Taxable at normal rate of tax