LTCG .. FMV to be considered

This query is : Resolved

K.G.Shah

K.G.Shah (Querist)
Follow

29 December 2020 Hello ..!
Mr. A was holding security prior to 31/1/2018 .
The FMV as on 31/1/2018 was 305. ( as per bhav copy of NSE).

Then company declared bonus 3: 1 .
Adjusted closing rate in same ratio comes 229.

Now calculating gain which rate to be considered 305 or 229..

Please advise urgently .. return is pending .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

29 December 2020 Consider 305 for all holdings as on 31/01/2018. Bonus declared after 31/01/2018 you consider cost as zero.

K.G.Shah

K.G.Shah (Querist)
Follow

29 December 2020 Sir , so in case of sale of bonus share, the cost is zero.
It means entire sale proceeds of Sale of bonus shares will be long term capital gain and is taxable ?

Upgrade to CAclubindia Pro. Subscribe Now!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

30 December 2020 Yes it's.......................