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Tax Expert - Answered on Jul 06, 2023

Asked on - Jun 03, 2023

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.
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