Home > Money > Question
Need Expert Advice?Our Gurus Can Help

Can I claim exemption or pay less capital gains tax on HDFC stock?

Samraat

Samraat Jadhav  |2194 Answers  |Ask -

Stock Market Expert - Answered on Feb 05, 2025

Samraat Jadhav is the founder of Prosperity Wealth Adviser.
He is a SEBI-registered investment and research analyst and has over 18 years of experience in managing high-end portfolios.
A management graduate from XLRI-Jamshedpur, Jadhav specialises in portfolio management, investment banking, financial planning, derivatives, equities and capital markets.... more
Asked by Anonymous - Sep 14, 2024Hindi
Listen
Money

I got HDFC BANK shares on rights basis in 1995 as i was having HDFC LTD shares. Twice stock split took place in 2011& 2019. Now HDFC LTD & HDFC BANK merged. Now if i sell how much tax i have to pay? Please guide.

Ans: I understand that navigating tax implications can be tricky. Since you acquired HDFC Bank shares on a rights basis in 1995 and have experienced stock splits in 2011 and 2019, the merger with HDFC Ltd adds another layer of complexity.

To determine the tax you'll need to pay upon selling your shares, you'll need to consider the following:

Cost Basis: Calculate the original cost basis of your shares, including any additional shares received from the stock splits.

Current Market Value: Determine the current market value of your shares at the time of sale.

Capital Gains: Subtract the cost basis from the current market value to find the capital gains.

Holding Period: Since you've held the shares for over 20 years, they qualify as long-term investments, which typically have a lower tax rate compared to short-term investments.

Tax Rate: The long-term capital gains tax rate for equities in India is 10% if the gain exceeds ?1 lakh in a financial year.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Latest Questions
Dr Nagarajan Jsk

Dr Nagarajan Jsk   |229 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Feb 05, 2025

Asked by Anonymous - Jan 31, 2025Hindi
Listen
Career
My child will be appearing for NEET UG 2025 for the fourth time. Each time his performance has been abysmal, which, I know, is going to be repeated this year too. We have already asked him to move ahead but he is adamant on appearing in NEET which is beyond his calibre. He doesn't have any idea what to do next, has never thought of a Plan B,C or D. Kindly guide as to how plan a career ahead for him. Is there any sort of psychoanalysis to know what is the right study option for him and where to get it done. I can't afford crores of rupees in pvt. medical colleges/abroad .I can take professional assisstance . Kindly give me contact number/ email ID. Thanks.
Ans: Hi Sir,

Don't worry. First, it's important to counsel him.

The health sector is a promising field, which is why I believe your son is so determined to appear for the NEET exam, even though this will be his fourth attempt. It’s natural for him to feel a bit worried. I think he needs to reflect on why he hasn't been able to succeed so far. It's crucial for him to analyze where the problems lie. For example, if he's struggling with chemistry, he should focus more on that subject, as well as the others he finds challenging.

He has a lot of homework to do, including taking mock tests and learning effective strategies rather than just simple ideas.

I have one question: Has he enrolled in any study or coaching center for NEET preparation? If so, it would be beneficial to discuss ways to improve his performance.
If he has prepared himself, kindly approach the best coaching center near your area. For more information about us, you can contact the admin.

Poocho. Life Change Karo!

...Read more

Anu

Anu Krishna  |1488 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Feb 05, 2025

Listen
Anu

Anu Krishna  |1488 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Feb 05, 2025

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x