07 June 2019
In row of FMV of shares , I have some bonus shares where Fmv is higher than sale value and others where fmv is lower than sale value. Now if I had only former capital gains will be 0. If i had only later there will be capital gains. Now while entering combined fmv and combined sale value itr shows sale value lower than fmv and hence no gains .what should i do. Example one bonus share fmv is 100 and sale is 50 so capital gain will be 0 and not -50. Other bonus share fmv is100 and sale 150. So gain 50 .if entering combined fmv is 200 and sale is 200 so I save ltcg. Both shares are long term. Kindly advice
09 June 2019
Fair market price on shares and mutual funds is available online. the row ask to input FMV CUMMULATIVE instead of grandfathered amount. this creates confusion and leads to having ltcloss cancel against capital gains. original intention of 55(2)ac was to not book capital losses if fmv was lower than sale price.
10 June 2019
i think the section is aiming at determining the cost of acquisition. And it says the cost of acquisition shall be HIGHER of (i) cost of acquisition AND LOWER of FMV /full value of consideration. Now say for bonus shares....... cost of acquisition NIL, FMV say 100, sale price say 50.....Right? In such case 50 shall be regarded as cost of acquisition. Now tell me what is your difficulty?
CAclubindia
