LTCG on sale of listed equity shared in sched 112A?

Ankit Neema (2742 Points)
Replied 02 August 2021

I will suggest you to file your return with CA

Manas Phadke (Senior Consultant) (90 Points)
Replied 02 August 2021

Filing my return through a C.A is not the answer to the queries I've raised. Don't bother replying if its not going to be helpful.

RITESH KUMAR BHAGAT (Student) (110 Points)
Replied 02 August 2021

Edit the Schedule 112A and Saved it again then Log out from Portal and Re-Login into Portal by Resuming File.

Samantha J (1236 Points)
Replied 02 August 2021

Look up taxes paid sch

Amarjeet Kaur (self employed) (108 Points)
Replied 02 August 2021

The amount of LTCG is included only for the purpose of computation of Total Income. Tax is not calculated on this amount by the utility when the amount is less than Rs. 1 lac (Or calculated at the reduced applicable rate on the amount exceeding Rs. 1lac). But don't forget to fill the schedule SI (Special Income) and the quarter wise detail of inflow of the LTCG.

Manas Phadke (Senior Consultant) (90 Points)
Replied 04 August 2021

Thanks for your reply, but even though the amount of LTCG in sched 112A is less than 1 lac, its being considered as part of the total income for tax calculation. I've reverse computed the tax payable on total income in Part B- TTI as per the utility and that value is matching with tax computation on Total income including LTCG. Worst part is rather than 10%, marginal tax rate as per total income i.e. 30% has been applied to LTCG as well.

Samantha J (1236 Points)
Replied 04 August 2021

Download prefilled json again and do the following steps.1.Fill sch 112A first.Then CFL then BFLA Then CYLA .Now fill salary sch, OS etc Then all deduction s etc Then TDS sch ensuring that TDS matches with Form 26AS After all this check taxes paid sch ch and then cal TTI .Get back in case of problems

Manas Phadke (Senior Consultant) (90 Points)
Replied 05 August 2021

Thanks so much for your reply, I think I missed confirming the Schedule SI (Special) which was causing this issue. Now it is correctly excluding the LTCG amount from the Total income and also computing tax correctly.

Samantha J (1236 Points)
Replied 05 August 2021

Did my solution help you?

Acche Din (39 Points)
Replied 08 September 2021

Samantha J

Can you please respond, how would one input data in Schedule 112a in cases of M&A, e.g. Gruh Shares bought before 31 Jan 2018 and now Bandhan bank shares being sold. Merger took place in ratio of 1000 gruh exchanged for 568 of Bandhan. The record date for merger was Oct 17, 2019.

Suppose 568 shares of Bandhan are being sold now.

In shares sold we put 568 shares and current market price.

In cost of acquisition , can we put total cost of purchase of 1000 shares of Gruh? since that is equivalent of 568 shares of Bandhan now being sold?

In FMV per share, we will need to put Gruh price as on 31 Jan 2018 which is 593 (or do we put FMV equivalent for 1 share of Bandhan which would be 593 multiplied by the merger ratio1000 divided by 568 = 1044. The Income Tax authorities will not be able to match the ISIN put of the share being sold i.e. Bandhan with the FMV and there will be mismatch. But what is the solution in that case?

Amarjeet Kaur (self employed) (108 Points)
Replied 08 September 2021

Dear Sir,

In my opinion, you have to put the total cost (to you) of the equivalent No. of GRUH shares as on the date of merger. The utility (Form 112A) will automatically give the benefit, if any, of the FMV (of GRUH shares) as on 31-01-2018.

Acche Din (39 Points)
Replied 09 September 2021

Thank you Shri Amar, but I still need to input a price for FMV per share in the given column in Schedule 112A - as you will see in my detailed query above.

Amarjeet Kaur (self employed) (108 Points)
Replied 10 September 2021

Dear Sir,

Yes, it is correct. But logically you have to fill the FMV as on 31-01-2018 of 1.7606 shares (1000/568) & not of 1 GRUH Shares. I am, however, not sure whether it is a correct proposition.

Acche Din (39 Points)
Replied 12 September 2021

Imagine hypothetically for a moment if the ratio was 1 Bandhan share for 100 Gruh shares. Therefore, it is only logical to expect and to convince IT authority to concede to proportionate equivalence or else the grandfathering benefit passed by legislation would not accrue fully. Anything short of that would mean shortchanging an assessee on what has beet legally granted.