Long term capital tax due to share split

ram bablani (2 Points)

24 July 2024  

Hello ,

Good Day. I have a query . We had 400 shares of a company A which we had bought in year 1995 for which the FMV on 31st Jan , 18 is say Rs600. Now in year 2021 the company does a split and due to the split the total shares becomes 1000 (face value Rs 5 to Rs 2) , so increased to 2.5 times the original quantity

We have sold the shares in Dec 2023. Now while filing the tax return , do we split /divide the original value of Rs600/ 2.5 to calculate the New Fair value per shares on 31st Jan or would the original value of Rs 600 per share be used .

Thanks