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In AIS, Is there need to correct the acquistion price for sale of equity shares,(DEPO)

Rajan svr (DGM) (44 Points)

29 June 2024

In the sale of equity shares,(DEPO) in AIS, in all IPOs against the sale, it is indicated that cost of acquisition is 0. Since I have a sold a HNI Lot in many batches, there are multiple entries. For all the IPO allotments and also in cases where it is not able to catch old price, the volume of entries is huge. I have to correct CG in ITR. If IT authorities see CG from sale transaction it may by 3-4 times of the actual CG. Is there need for me to attempt correcting the acquisition price or this is not needed.

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10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177852 Points)
Replied 30 June 2024

Need to report them to your RTA of your demat account. Get it rectified there , first.

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Rajan svr (DGM) (44 Points)
Replied 30 June 2024

Thanks for the response. Trading and demat ac is with Motilal Oswal (CDSL) In their CG reports they are correctly indicating all rates which Iam using as the basis for filling ITR CG. I will write to RTA but not sure when this will get rectified and then get reflected in AIS. Can I file return on actual CG and not bother about flagging wrong entries in AIS portal.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177852 Points)
Replied 30 June 2024

Report it to Motilal Oswal for IPO shares also. If the rates of the shares sold were as per IPO allotment rate, ask them to rectify their SFT reporting, as AIS report is based on these SFT reports.

Meanwhile you may file your ITR based on actual CG, but better to wait for rectification by MO, which may not take more than 4/5 working days.

Rajan svr (DGM) (44 Points)
Replied 30 June 2024

Based on my accounts and accounts from some friends, It appears AIS is getting IPO prices correctly from NSDL while for CDSL it is indicating Zero.

Rajan svr (DGM) (44 Points)
Replied 30 June 2024

Thanks for your prompt reply. I will proceed with filing the ITR after wait of some 10-15 days. Based on my accounts and accounts from some friends, It appears AIS is getting IPO prices correctly from NSDL while for CDSL it is indicating Zero. For CDSL I have checked with at least 4 different RTAs Motilal Oswal, Zerodha, Hem securities etc. and none of the a/c is showing IPO price in the AIS (showing Zero) . For NSDL I have checked NSDL based accounts like HDFC securities, India infoline, all are showing IPO acquisition prices correctly.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177852 Points)
Replied 30 June 2024

You may give feedback in AIS wherever the IPO price is 'zero', like 'do not agree'

Vijayandmit (Fresher) (22 Points)
Replied 04 July 2024

In accounting and financial reporting, AIS (Accounting Information Systems) plays a crucial role in accurately recording transactions, including the acquisition and sale of equity shares (like DEPO, presumably a stock symbol). Here are a few key points related to your query:

Acquisition Price: When acquiring equity shares, the acquisition price (or cost basis) is typically recorded at the purchase price plus any transaction costs directly attributable to the acquisition. This ensures that the cost of acquiring the shares is accurately reflected in the financial records.
Sale of Equity Shares: When selling equity shares, the proceeds from the sale are compared against the acquisition cost (adjusted for any transaction costs and other adjustments) to determine the gain or loss on the sale. This helps in calculating the taxable income or loss associated with the sale.
Need for Adjustment: It's important to adjust the acquisition price (cost basis) for any relevant factors that impact the cost of acquiring the shares, such as transaction costs, adjustments due to stock splits, dividends reinvested, or other corporate actions that affect the value of the shares held.
Reporting Accuracy: Correctly adjusting the acquisition price ensures that the financial statements accurately reflect the true cost and value of equity shares held or sold. This is essential for financial reporting compliance and to provide stakeholders with transparent and reliable information about the company's financial position and performance.

Therefore, yes, there is a need to correct the acquisition price for the sale of equity shares in AIS to ensure accurate financial reporting and compliance with accounting standards. This helps in calculating gains or losses correctly and provides a clear picture of the company's investment activities.

Bikash K (Unemployed) (47 Points)
Replied 04 July 2024

Thanks for the update

Arjun (8 Points)
Replied 23 July 2024

This is a very interesting topic. I appreciate the detailed explanation and look forward to learning more about it. Visit India IPO and launch your IPO

Amit Saini (4 Points)
Replied 30 July 2024

Rajan Ji, What you have done for the same. In my AIS Report also Cost of Aquisition of IPO is zero(0) and also showing Off Market. Should I go with feedback option and edit my Cost of Aquisition. Please tell me!!