Mihir Tanna |1089 Answers |Ask -Follow
Tax Expert - Answered on Sep 06, 2022

My query is:
1. How to calculate its purchase cost, capital gains and taxable income?
2. Is LTCG rule for Grandfathering applies in this case also by taking FMV on 31.1.2018 of this share?
3. If I want to sell partially does FIFO rule to be taken for calculating capital gains apply?
4. What will be the taxation process (better if it can be illustrated by example with dates as above for better understanding) and to be shown under which schedule & in which ITR form no.
Please enlighten me about the same as utter confusion is there.
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.
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