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Mihir

Mihir Tanna  |1031 Answers  |Ask -

Tax Expert - Answered on Sep 06, 2022

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
Vina Question by Vina on Sep 06, 2022Hindi
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I have to sell some shares of a particular large company, originally purchased in 1970 and thereafter getting increased through Bonus Shares in different proportions till last in Aug 2016. Meanwhile the company has also changed its face value from Rs 10 to Rs 1 per share in 2003-2005 or so, and thus increasing the no. of shares. Now I only know about the total nos of shares I have presently.

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.

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.

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.
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Tejas

Tejas Chokshi  | Answer  |Ask -

Tax Expert - Answered on Apr 25, 2023

Asked by Anonymous - Mar 19, 2023Hindi
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I have inherited shares from my father after his death. Many of these shares had been purchased by him some 15-20 years back and the purchase price is not known to me. I have following queries when I sell these shares : 1) Will my purchase cost be taken as NIL or can I use the price which my father paid as my purchase price 2) If yes then do I have to retain them for 1 year for claiming Long Term Gain/Loss 3) For shares whose purchase value is not known can I ONLY use FMV as on 30/1/2018 for calculating the gain or loss
Ans: As per Indian Income Tax laws, when you inherit shares from your father, the cost of acquisition of such shares will be deemed to be the cost at which your father had acquired these shares. This cost is commonly known as the 'cost of acquisition' or 'purchase price'.

So, to answer your first question, you can use the price at which your father had purchased the shares as your purchase price.

Regarding your second question, the period of holding of the shares will be counted from the date of acquisition by your father. Hence, if the shares were purchased by your father 15-20 years back, and you sell them after holding them for more than 1 year from the date of inheritance, you would be eligible for long-term capital gains tax benefits.

Regarding your third question, if the purchase value of shares is not known, then the cost of acquisition for the purpose of computing capital gains will be the fair market value (FMV) of the shares as on 31st January 2018, which was the date of introduction of the tax on long-term capital gains on equity shares. This FMV will be considered as the cost of acquisition for the purpose of calculating capital gains.

It is important to note that if you sell shares within one year of acquisition, you would be liable to pay short-term capital gains tax on the profits made, whereas if you sell shares after one year of acquisition, you would be liable to pay long-term capital gains tax on the profits made. The tax rate for long-term capital gains tax on equity shares is currently 10% (if the gains exceed Rs. 1 lakh in a financial year) without indexation benefit or 20% with indexation benefit.

..Read more

Mihir

Mihir Tanna  |1031 Answers  |Ask -

Tax Expert - Answered on Jul 06, 2023

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I am a senior citizen aged 72 years, based in Calcutta ,Engineer by profession, retired voluntarily about 17 years back from a very well known MNC. I had started buying shares about 30 years back, applying for new shares, also from the market and availed of the bonus shares or special offers from my holdings.My holding includes from my erstwhile company which had offered their shares to their employees too. I have small /medium holdings in about 50 active companies,mostly big corporates and apart from a very few, are actively traded. The problem has arisen now that I have decided to offload my shares due to advancing age and indifferent health. I seem to have misplaced my dates of purchases of most of the holdings. For capital gains calculations one requires the dates of purchases. I believe there is a cutoff date 31.01.2018 which is taken as the date of purchase for very old share purchases. My query ,what does very old share purchases mean, 10/15/20 years or more? Are there any other method for this purpose? If there be any pl elucidate. Will communicating with the share depts or the share managing associates of these 50 companies help,although it will be tedious and time consuming. Awaiting your advice eagerly.
Ans: Transfer of listed shares through stock exchange is taxable from FY 2018-19 and for shares acquired before 1.02.2018 will not be taxed for gain earned till 31.01.2018. Thus, you need to check sale value with FMV as on 31.01.2018. Lower of both will be compared with cost of acquisition. Higher of both will be considered as cost of acquisition and difference amount will be charged under the head income from capital gain for investor.

Thus, there is no limit on years like 10-15-20 years.

..Read more

Latest Questions
Nayagam P

Nayagam P P  |4284 Answers  |Ask -

Career Counsellor - Answered on Mar 07, 2025

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Jee main 2025 attempt 1 my daughter score 89.55 percentile with delhi state quota. What is their expected rank and govt college she got
Ans: Ravish Sir,

How to Predict Your Daughter's Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide

Once the January JEE Main session results are declared, many students and JEE applicants start asking common questions about eligibility for specific institutes (NITs, IIITs, GFTIs, etc.) based on their percentile, category, preferred branch, and home state.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Daughter's Admission Chances Using JoSAA Data
Step 1: Collect Your Daughter's Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least your daughter's 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your daugther's details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If your daughter is open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Daughter's Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State (OS) candidates and different categories.
Pro Tip: Adjust your daughter's expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, and preparation strategies, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your daughter's admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Rajesh Kumar

Rajesh Kumar Singh  |155 Answers  |Ask -

IIT-JEE, GATE Expert - Answered on Mar 07, 2025

Nayagam P

Nayagam P P  |4284 Answers  |Ask -

Career Counsellor - Answered on Mar 07, 2025

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I am getting 93.55 percentile in jee mains session 1 2025. Is there any chance I can get mechanical or electrical branch in dtu or nsut. I am from general category with Delhi state domicile. Someone pls tell
Ans: Aryan, Apart from JoSAA Counselling Process, you can also participate in JAC-Delhi Counselling Process which I hope you might be aware of.

Now, coming to your Question.

How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide

After the result of January JEE-Session is declared, RediffGURU has been getting standard questions from Students & JEE Applicants regarding the eligibility for particular Institute (NIT or IIIT or GFTI etc.) based on their Percentile scored, their Category, their preferred Branch & their Home State.

Providing information for each JEE Applicant based on these factors can be challenging. Some of the reputed Education based websites provide 'College Predictor' facility. Though you can check the same with your percentile based on your category etc., I would suggest all of you the following steps to know the chances of getting the Institute / Branch, based on last year's data. Please note, you will get a fair idea based on the last year's data (not an accurate idea). Now, here are the simple and most effective steps:

STEP 1: Note down your percentile, category, institute types preferred (NIT, IIIT or GFTI), preferred locations or you are ready for any location in India, Academic programs you prefer (list out minimum 3 programs you prefer as back-ups, instead of relying only one program) & the most important factor is your Category (General-Open or SC or SC (PwD) or OBC-NCL (PwD) or EWS (PwD) or Open (PwD) or ST or EWS or OBC-NCL?)

STEP 2: Convert your Percentile into Rank, the formula for which is available in Google.

STEP 3: Just type in Google, 'JoSAA Opening & Closing Ranks 2024'. Click the 1st Result. You will land directly into the JoSAA's Website that too into the window where you can put the inputs based on what you have noted down in STEP 1 Above.

STEP 4: 1st it asks for Round Number as around 5 rounds are held in JoSAA's Counselling Process. I suggest you, choose the 4th Round option on safer side.

STEP 5: Choose the Institute Type (NIT or IIIT or GFTI). If you are ready for all, better to go one-by-one.

STEP 6: As far as the Institute Name also (based on location), I suggest you to go one-by-one (institute) based on your preference (Avoid Choosing ALL to avoid confusion).

Choosing one-by-one will take time, but recommended.

STEP 7: Fill in the Academic Program (based on in your order of preference one by one).

STEP 8: After choosing the right options, applicable to you, click SUBMIT button.

You will get a detailed list of opening and closing ranks, based on your options chosen

STEP 9: Now start noting down the Opening & Closing of Each Institute & Each Branch you preferred in your Dairy or note-book for quick reference when you participate in JoSAA Counselling.

STEP 10: MOST IMPORTANT: Write 2 different columns for Opening & Closing Ranks in your dairy for each Institute. On SAFER SIDE, consider the Opening & Closing Ranks litter lesser than that of 2024 as the same fluctuates every year but not significantly.

Let me explain with an example. You have filled in as follows. Round 4 | NIT | NIT-Delhi | Mechanical Engineering | OPEN Category, the output of which shows Opening & Closing Ranks as '8622 & 26186' for HOME STATE Open Category. You should consider as / change to '8300 & 23000' (on a safer side). Let us take into consideration the Female Category for the same. Opening & Closing Rank shows '34334 & 36212'. You change it to '31000 & 33000' (on a safer side). Based on this example, you can change accordingly for OTHER STATES & your Category.

As already mentioned, Opening & Closing Ranks vary every year but not significantly, as such, suggested to change the same to lesser number and note down in your diary or in a separate note-book for quick reference while participating in JoSAA's Counselling Process.

You can follow the same steps for your JEE-April session & JEE-Advanced too.

Hope, you have thoroughly understood the above explained in a very simple and very easy-to-understand language.

If time permits to know about the JoSAA's Counselling Process, please watch one of the 180 Videos of EduJob360 on 'JoSAA Counselling Process', Engineering Entrance Exams & Preparation Strategies for the same.

All the Best for Your Son's Prosperous Future.

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Nayagam P

Nayagam P P  |4284 Answers  |Ask -

Career Counsellor - Answered on Mar 07, 2025

Asked by Anonymous - Mar 06, 2025Hindi
Listen
Career
My son got 88.53 percentile in JEE mains 2025 Jan session EWS category, can he get admission in NIT for Chemical or Electrical?
Ans: How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide

After the result of January JEE-Session is declared, RediffGURU has been getting standard questions from Students & JEE Applicants regarding the eligibility for particular Institute (NIT or IIIT or GFTI etc.) based on their Percentile scored, their Category, their preferred Branch & their Home State.

Providing information for each JEE Applicant based on these factors can be challenging. Some of the reputed Education based websites provide 'College Predictor' facility. Though you can check the same with your percentile based on your category etc., I would suggest all of you the following steps to know the chances of getting the Institute / Branch, based on last year's data. Please note, you will get a fair idea based on the last year's data (not an accurate idea). Now, here are the simple and most effective steps:

STEP 1: Note down your percentile, category, institute types preferred (NIT, IIIT or GFTI), preferred locations or you are ready for any location in India, Academic programs you prefer (list out minimum 3 programs you prefer as back-ups, instead of relying only one program) & the most important factor is your Category (General-Open or SC or SC (PwD) or OBC-NCL (PwD) or EWS (PwD) or Open (PwD) or ST or EWS or OBC-NCL?)

STEP 2: Convert your Percentile into Rank, the formula for which is available in Google.

STEP 3: Just type in Google, 'JoSAA Opening & Closing Ranks 2024'. Click the 1st Result. You will land directly into the JoSAA's Website that too into the window where you can put the inputs based on what you have noted down in STEP 1 Above.

STEP 4: 1st it asks for Round Number as around 5 rounds are held in JoSAA's Counselling Process. I suggest you, choose the 4th Round option on safer side.

STEP 5: Choose the Institute Type (NIT or IIIT or GFTI). If you are ready for all, better to go one-by-one.

STEP 6: As far as the Institute Name also (based on location), I suggest you to go one-by-one (institute) based on your preference (Avoid Choosing ALL to avoid confusion).

Choosing one-by-one will take time, but recommended.

STEP 7: Fill in the Academic Program (based on in your order of preference one by one).

STEP 8: After choosing the right options, applicable to you, click SUBMIT button.

You will get a detailed list of opening and closing ranks, based on your options chosen

STEP 9: Now start noting down the Opening & Closing of Each Institute & Each Branch you preferred in your Dairy or note-book for quick reference when you participate in JoSAA Counselling.

STEP 10: MOST IMPORTANT: Write 2 different columns for Opening & Closing Ranks in your dairy for each Institute. On SAFER SIDE, consider the Opening & Closing Ranks litter lesser than that of 2024 as the same fluctuates every year but not significantly.

Let me explain with an example. You have filled in as follows. Round 4 | NIT | NIT-Delhi | Mechanical Engineering | OPEN Category, the output of which shows Opening & Closing Ranks as '8622 & 26186' for HOME STATE Open Category. You should consider as / change to '8300 & 23000' (on a safer side). Let us take into consideration the Female Category for the same. Opening & Closing Rank shows '34334 & 36212'. You change it to '31000 & 33000' (on a safer side). Based on this example, you can change accordingly for OTHER STATES & your Category.

As already mentioned, Opening & Closing Ranks vary every year but not significantly, as such, suggested to change the same to lesser number and note down in your diary or in a separate note-book for quick reference while participating in JoSAA's Counselling Process.

You can follow the same steps for your JEE-April session & JEE-Advanced too.

Hope, you have thoroughly understood the above explained in a very simple and very easy-to-understand language.

If time permits to know about the JoSAA's Counselling Process, please watch one of the 180 Videos of EduJob360 on 'JoSAA Counselling Process', Engineering Entrance Exams & Preparation Strategies for the same.

All the Best for Your Son's Prosperous Future.

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

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.

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