50 BPCL Shares Pur on 22June 2017 on NSE exchange @ Naked Price ( without STT, ST, Brokerage,Exchange charges, stamp duty) Rs.641.65/- ( Price inclusive of all Rs.646.07/-). Bonus share for every 1 share 2 shares recd. on 28 July 2017. Question is . 1) What is LTCG if I sale 25 shares of BPCL now.? 2) If I sale 50 shares now then what is LTCG .? 3) If I sale all 75 shares including bonus now what is my LTCG.? If bonus shares are recd on 28th July 2018 then what is my LTCG for question 1), question 2),and question 3). Reply me by email - [deleted]
10 infosys pur on 22 Nov 2017 @ 1559.13/- , 25 additional pur on 21 Aug 2017 @ price 906.32 . Bonus share 1:1 recd in sept 2018. so 35 bonus shares recd. if all 70 shares sold now what is my LTCG
PLEASE TREAT THE DATE OF 10 INFOSYS PUR ON 22NOV 2007 & NOT 22 NOV 2017.
Dear Sir,
Hope you are doing well !!
According to the newly inserted section 112A of the Income Tax Act, the CoA will be calculated as the higher of:
a) the actual cost of acquisition of such asset; and
b) lower of-
i) fair market value of such asset as on January 31, 2018; and
ii) the full value of consideration received or accruing as a result of the transfer of the capital asset.
Please take a phone consultation for detailed workings.
Sir the capital gain calculation on sale of original shares and bonus shares would be different as the cost price for bonus shares would be Nil.
Since they are STT paid shares we also need to find its value as 31.1.18 to apply the grandfathering rule.
Please mention the sale date for capital gain calculation. however if they are sold in FY 2018-19 then the 50 original shares of BPCL will have long term capital gain and 25 bonus shares received on 28.07.2018 would have short term capital gain.
Long term capital gain will be taxed at 10% if the total gain is above Rs. 1 lakh.
Same would be the case with Infosys.
It would be great if we can have a phone conversation and personal consultation to discuss same as I can help you with calculation as well as filing your return of income.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi,
- From 31.01.2018, there was change in the provisions in respect to treatment of long term capital gain on sale of equity shares. In your case, the shares were purchased before 31.01.2018 and you are eligible for such provision. Below are the steps to calculate the cost of the share.
Step 1 : Find out market value of the share as on 31.01.21018 and compare it with the sale price.
Step 2 : The lower of the above will be compared with the actual cost of the shares.
Step 3: The higher value in step 2 will be the cost of the asset.
- In case of bonus shares, cost is NIL
Thanks
Hello,
With recent changes from Budget 2018, Sec 10(38) was withdrawn and Sec. 112A was introduced, making the LTCG on sale of equity shares chargeable to tax at concessional rate of 10% on gains in excess of Rs. 1 Lacs without providing the benefits of indexation.
To calculate the capital gain, you need to calculate the cost of acquisition. For investments made on or before 31 January 2018, there is a different method prescribed for calculation of the cost.
Cost of such shares shall be deemed to be the higher of:-
Cost of bonus shares received will be zero.
For better resolution, you can take a phone consultation.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
