Dear Sir,
Yiu should consider the first 1000 bought in 2015.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Capital gains on listed securities
I have DP accounts with 2 brokers.( X and Y) With X Broker , I bought Andhra Sugars 1000 @ 129/- in June-2015. With Y Broker, I bought Andhra Sugars 2000 @ 220/- August -2016. In November I closed the DP account with X Broker and transferred the existing Andhra Sugar shares of 1000 to DP account with Y Broker. Now Y Broker has sold 1000 Andhra Sugars in January-2017 @ 298/-. To book the Capital gains in my Book of Accounts which 1000 shares should I consider first ? The one bought in 2015 or 2016 ?
Asked 7 years ago in Income Tax
Hi,
Transfers between your own DP Accounts is immaterial from taxation point of view.
So, in my opinion, for the purpose of Capital Gains, you should consider the 1,000 shares bought @ Rs. 129 in June 2015. This will be a Long Term Capital Gain and fully exempt from tax
Dear sir,
It is generally as per First in First Out (FIFO) shares purchased hence the shares you have sold in January,17 shall be first shares purchased in June,15 and accordingly it will be treated as long term capital gain only.
Do we have anything in written the Income Act on this particular thing ?
Asked 7 years ago
You should consider shares which bought in 2015
No documents need to submit with authorities but Kept in records your dp holding statements to proof period of holding if any clarification required by department
Hi,
Regarding which thing you want to know?
Long-term Capital Gains from STT Paid Equity Shares (i.e all Listed Shares) is exempt from tax u/s 10(38) of the Income Tax Act, 1961.
If you take FIFO method then you can take June 2015. and claim exemption
Hello Sir,
The shares bought in 2015 should be considered in your case.
The Income Tax judges the records on a assessee basis which is you and not your broker. So it is immaterial from which broker were the shares bought and transferred.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
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