LTCG on equity of demergered shares

Hello,

I had a few shares of Arvind Ltd bought before 2018 Jan 31st. After demerger got  a few shares of Anup Engineering and Arvind Fashions Ltd. Iam planning to sell them, but could not find FMV of these stocks on Jan 31,2018. In such cases how is LTCG calculated? 

Thanks in advance

 

Replies (6)
Quick Summary
This discussion explores how to calculate Long Term Capital Gains (LTCG) tax on shares received from a demerger when the Fair Market Value (FMV) as of January 31, 2018, is unavailable. It clarifies that LTCG arises upon selling shares, but also discusses scenarios where capital gains or losses can be realised even without a sale, such as share cancellation or settlement of worthless investments.

LTCG ARISES ONLY WHEN SHARES ARE SOLD. 

Not necessarily. LTCG and LTCL may arise on unlisted and delisted stocks without the sell transaction.

Many companies automatically cancel the shares and delete them from your demat account without your knowledge or without your consent.

https://www.ndtv.com/business/essar-steel-announces-cancellation-of-shareholder-holdings-2157834#:~:text=In%20an%20e%2Dmail%20statement,India%20Company%20Secretary%20Pankaj%20S.&text=Consequently%2C%20the%20entire%20existing%20issued,2019%2C%20the%20company%20secretary%20said.

Such transactions can also cause LTCL 

That is equal to maturity right, that is why taxes are applicable

it is also settlement, When the investment  does not produce any further benefits, it’s called disposal or settlement and taxes applicable on them

Thanks

 

 

Thanks

 

 

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