I would like to know how capital gains is calculated when rights entitlement (RE) is sold through stock exchange? What would be the cost of acquisition of the RE and how to see whether it is a long term or short term capital gain? Whether we should take the date when the original shares were bought or date when rights issue was announced?
17 May 2021
The cost of acquisition is zero. In case shares are held more than one year it's long term capital gains. Consider the acquisition of original shares.
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