Capital gain

This query is : Resolved

ankush (Querist)
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21 August 2011 if the shareholder paid to subscribe the right shares before1-4-1981. now the shareholder is going to sell all the right sharein 2011 which he had suuscribed before 1-4-1981. does the indexation of cost allowed in 2011?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 August 2011 In case the shares are of listed company, he is not required to do indexation. As LTCG is exempt
.
Where STT is not paid Indexation can be done
in case of a LT Capital Asset.
.
Practically you may take the same cost as on 1.4.1981 as paid for subscribing the right shares. (It will be difficult to get the value from a Merchant Banker)