I have some EIL dhares allotedcas employee in 1997 i dont remember payment done ( purchase price ) I wanr to sale them all i read the cost of procurement will be the fmv of shares ( oeak price ? ) as on 31 st January 2018 And the ltcg will be No of shares sold X ( price of sale - fmv on 31 January 2018 ) ? And 10 % of this as LTCG ?

Ans: Grandfathering would be applicable for you while computing the capital gains for Tata Infrastructure Fund. The Cost of Acquisition to be considered would be the higher of:

(i) Cost of Acquisition of the asset and

(ii) Lower of:

1. Fair market value of the asset as on January 31, 2018 and
2. Full value of consideration received / receivable on transfer of the capital asset.

The computation for the same is tabulated below. I had assumed it is under dividend mode based on the NAVs provided:

Ans: I understand that you have sold listed shares and all corporate actions took place before 31st January 2018, hence capital gain earned after such date will be taxable.

For example: Today you hold 100,000 shares of that company, FMV as on 31st January 2018 is Rs 200 and today if you transfer 10,000 shares through recognised stock exchange at shares Rs 300, Capital gain of Rs 10,00,000 will be taxable on FIFO basis.

You have to show such gain in 112A schedule (acquired before 31st January 2018) under the Schedule CG.

Ans: The cost of purchase of shares of HDFC Ltd will be taken to be the cost of purchase of shares of the HDFC Bank (amalgamated company). In this example, the cost of purchase of 50 shares of HDFC Bank received on merger shall be ?59,524 ( ?60,000/50.4*50). This adjustment to the cost of purchase is done as against the original cost of HDFC Ltd share entitlement of 50.4 shares. Accordingly, there will be a long-term capital gain of ?30,476 ( ?90,000- ?59,524). One important thing to note here is that the benefit of grandfathering will also be available in cases where shares of the amalgamating company were purchased on or before 31 January 2018.

Ans: Assessing Your Non-Convertible Debenture (NCD) Taxation
Let's break down your query regarding the NCD taxation for this year. We'll focus on the values for cost of acquisition, transfer expenses, and sale price.

Understanding Your NCD Transaction
Purchased NCD: Rs 2,00,000
Admitted Value: Rs 2,30,533
Cash Receipt: Rs 21,630
Future SR: Rs 13,000
OCD: Rs 68,000 (redemption uncertain over 8 years)
Cost of Acquisition
The cost of acquisition is the original purchase price of the NCD. For your case, it's Rs 2,00,000.

Transfer Expenses
Typically, transfer expenses include brokerage, commissions, and other related costs incurred during the purchase and sale of the NCD. You haven't mentioned any specific transfer expenses, so we'll assume there are none. If there are any, you should include them here.

Sale Price
The sale price for the purpose of calculating the capital gains or losses includes the cash received, and the future SR received, but excludes the OCD, as its redemption is uncertain and spread over several years.

Cash Receipt: Rs 21,630
Future SR: Rs 13,000
Calculating Long-Term Capital Loss
Cost of Acquisition: Rs 2,00,000

Transfer Expenses: Rs 0 (assumed)

Sale Price: Rs 21,630 (cash received) + Rs 13,000 (future SR) = Rs 34,630

Steps to Calculate
Cost of Acquisition: Rs 2,00,000
Transfer Expenses: Rs 0
Sale Price: Rs 34,630
Long-Term Capital Loss Calculation
Long-Term Capital Loss = Cost of Acquisition - Sale Price - Transfer Expenses

Long-Term Capital Loss = Rs 2,00,000 - Rs 34,630 - Rs 0

Long-Term Capital Loss = Rs 1,65,370

Taxation Insight
Cost of Acquisition: Rs 2,00,000
Transfer Expenses: Rs 0
Sale Price: Rs 34,630
Long-Term Capital Loss: Rs 1,65,370
This loss can be set off against long-term capital gains in the same financial year. If not fully utilized, it can be carried forward for up to eight assessment years to set off against future long-term capital gains.

Final Insights
You should use Rs 2,00,000 as the cost of acquisition. Transfer expenses are zero if there are none. The sale price for this year's tax purposes is Rs 34,630. Thus, your long-term capital loss amounts to Rs 1,65,370.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in