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Anil

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Financial Planner - Answered on Jun 09, 2022

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more
Commodore Question by Commodore on Jun 09, 2022Hindi
Money

I am Super Senior VETERAN, DOR 01 SEPT 1998. I have been filing my ITR regularly. 

2) I shall appreciate your help to calculate Profit/Loss on Share/M.F Txt.

3) I have redeemed Tata Infrastructure Fund Folio No. 142726 , Qty 1496 units, Amt Rs.38473/ Dt 23/11/2020.

4) My Purchase was a) 489.939 units at Rs 10000/- Dt.01/03/2007b) Units 1069.68 at Rs 30000/- @28.05 Dt.23/01/2008

5) PLZ Calculate LTCG/LOSS. Also let me know if Purchase NAV will be based on NAV 31ST JAN 2018.

6) For Share Txt of VEDANTA QTY 210 Sell & L&T QTY 5 Sell, I will give details on receipt of your comment on Tata M.F. Redemption. 

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:

Capital Gains Computation
Sl No Description Date Units NAV Amount
1

Sales Consideration

23-11-2020 489.939 25.717246 12,600
Purchase 1 01-03-2007 489.939 20.410704 10,000
Cost of Acquisition - on FMV 31-01-2018 489.939 32.27 15,810
As per grandfathering principle - COA   12,600
2 Sales Consideration 23-11-2020 1006.061 25.717246 25,873
Purchase 2 23-01-2008 1006.061 28.045771 28,216
Cost of Acquisition - on FMV 31-01-2018 1006.061 32.27 32,466
As per grandfathering principle - COA   28,216
  Long Term Capital Loss -2,343
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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SIR,GOOD DAY Pl. TELL ME THE FOLLOWING NO.1,HOW TO CALCULATE MARGIN FOR TRADE? NO.2,HOW TO SAVE LTCG ON SALE OF EQUITIES? IF I TRANSFER SHARES TO MY WIFE,SONS THEN ALSO I WILL HAVE TO PAY LTCG OR TRANSFEREE WILL HAVE TO PAY ANY TAX..
Ans: Here's a breakdown of your questions:

1. Calculating Margin for Trading:

Margin requirements depend on the broker and the type of security you're trading (stocks, futures, etc.). Here's a general idea:

Margin: The minimum amount of your own money you need to invest in a trade. The broker lends you the rest.
Example: If you want to buy Rs. 10,000 worth of stock and the margin requirement is 50%, you need Rs. 5,000 of your own money and the broker lends you Rs. 5,000.
Important Note: Trading on margin involves higher risk.

2. Saving LTCG (Long-Term Capital Gains) on Sale of Equities:

Here are some ways to potentially save LTCG tax on equities held for more than 1 year:

Exemption Limit: Up to Rs. 1 lakh of LTCG from equity sales in a financial year is exempt from tax.
Offsetting Losses: Set off LTCG with short-term capital losses (STCL) or other capital losses to reduce your taxable LTCG.
Long-Term Holding: Holding equities for more than 1 year benefits from a lower LTCG tax rate (compared to STCG).
Transferring Shares to Wife/Sons:

Transferring shares to your wife or minor children is generally not considered a sale and typically incurs no LTCG tax for you. However, your wife/sons will inherit the cost price of the shares from you. When they sell, the LTCG will be calculated based on this inherited cost price.

Remember: Consulting a tax advisor is recommended for specific advice on your situation. Tax laws can be complex and subject to change.

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