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Ltcg tax when losses

Ram K (NA) (216 Points)

22 January 2019

Dear Sir/Madam,

If I sell shares (that I have been holding for a long time) that I have now, but the current price of the share is less than what it was on 31-Jan-2018, then with that price there's a loss incurred.

Do I need to pay any tax on the amount received after selling shares?

Thanks & Regards.

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Dhruv Shah (Article Student) (357 Points)
Replied 22 January 2019

To compute the gain or loss you incurred, you have to compare your selling price with the amount at which you purchased those shares! if you incur loss , then you don't have to pay any tax as the tax is required to be paid on the gain you have got!

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Ram K (NA) (216 Points)
Replied 22 January 2019

Dear Sir/Madam,

I understood (some internet article it seems) that you compare it against the price of the share as on 31-Jan-2018 keeping in mind the indexed value.

Thanks and regards

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Dhruv Shah (Article Student) (357 Points)
Replied 22 January 2019

Dear sir,

thanks for informing about this update ! & yes , You are correct at this stage ! With the update , you have to compute the LTCG by following process :

LTCG= Sale price - Cost of acquisition

now , Cost of acquisition will be Higher of
1. The actual cost of acquisition
or
2. the lower of,
a.Fair marker value on 31.1.2018
b.Sell price

Thanks again & Regards!