Tax Liability on Capital Gain from sale of shares

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Querist : Anonymous

Querist : Anonymous (Querist)

16 March 2010 How to calculate capital gains on sale of bonus shares?

One of my clients holding splash media 500 shares till November,2009 for Rs.54775/-Company issue bonus share in December,2009 in ratio of 3:1 in his account total shares is 2000. Now he want to sell total shares 2000 qty. Now how to calculate capital gain on sale of shares. Cost of bonus shares will be Nil. How to calculate the short term capital gain?

How to calculate capital gains on sale of shares which stock is Split from Rs. 10/- to Re. 1/-

One of my clients holding Comfort Intech 2000 shares till September,2009 for Rs.58100/-. Company split the shares from Rs. 10/- to Re. 1/- in his account total shares is 20000. Now he want to sell total shares 20000 qty. Now how to calculate capital gain on sale of shares. Cost of 20000 shares will be 58100/-. i.e. Per shares cost is 2.905. How to calculate the short term capital gain?

Kindly sugeest how calcaulate capital gain.

Thanks & regards

Aditya Maheshwari

Aditya Maheshwari (Expert)
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16 March 2010 In case of bonus the date of allotment of bonus shares will be taken as the date of purchase and so calculate capital gains on the same accordingly. If you sale now the bonus shares will attract STCG

Aditya Maheshwari

Aditya Maheshwari (Expert)
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16 March 2010 In case of split the date of purchase of original shares will be taken as the date of purchase of the split shares and the cost will be divided in 1:10 i. e. in ur query rs. 2.91/- and so calculate capital gains on the same accordingly. If your original shares were held for more than one year then on sale of split shares also LTCGains will attract.

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CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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16 March 2010 for STCG ON 1ST CASE:

TOTAL SALE CONSIDIRATION OF 2000 SHARE - 54,775/- = STCG,

STCG ON SPLIT OF SHARE :

TOTAL SALE CONSIDIRATION OF 20000 SHARE - 58,100/- = STCG,