28 February 2011
I held 116 shares of Reliance Petroleum, which was merged with Reliance Industries Ltd. After the merger, I was allotted 14 shares of RIL and an amount of Rs. 531.00 was received in cash. I want to know how this amount will be treated and how the capital gain should be calculated on the same. Please answer at the earliest.
28 February 2011
The amount of Rs. 531 was received against sale of 4 shares of RPL and hence the same should be ideally treated as capital gains where gain = 531 - 240 (4*60) = 291.
However since the same is a very small sum and may be also treated as income from other sources as sale of fraction right.
CAclubindia
