Captial gains

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raj (Querist)
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16 June 2010 Sir,

i have more than 10 lac worth of shares now, which were brought by me around 1992-2000.

my query is regarding capital gains..

1.if i sell them in this year and can i claim capital gain exemption...

2. as records are not maintain of buying i don't have the purchase price of most of the stocks, what can i do in this stage.

3.the exempted capital gains should be compulsory invest in any prescribed assets or can i do any thing or invest in stocks again.

4. my friend gave the advice to sell all stocks now and buy again next day ,so this will help me in getting tax exemption and next year no tax exemption

thanks for your suggestions

CA Punit

CA Punit (Expert)
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17 June 2010 Shares sold in damat form are subject to STT and long term gain thereon will be fully exempt from tax. You r free to do anything with it..
If your share are not in demat form then it is suggested to get them dematerialised first and then make the sale.

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raj

raj (Querist)
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17 June 2010 sir all the shares are in demat only since 2000-2002..

thanks for answering my 1 and 3 question...

i request experts to answer 2 and 4 also

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Porwal Consultancy

Porwal Consultancy (Expert)
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17 June 2010 Point No . 2 If you do not have purchase price you will LTCG benefit, because without knowning buying price how much long term capital gain you will claim, its better you ask for duplicate contract copies during that period.

Point No 4. If you want tax exemption there is no need to buy the share tomorrow again.