Dear All,
In may 2020 when reliance industries brought rights issue, they offered me some rights in my demat account. I was not in a position to buy the additional shares, so I simply sold those rights in the stipulated time in share market.
They were not shares but just rights that I sold for some 180 Rs/right and I got some money say 50K INR after selling them.
Now there is no cost of acquisition as they were just given to me either to buy as full shares at their stated value (some Rs 1200 / share) or sell at rights price (somewhere 180 to 190 / right) or just let go.
This 50K that I received, is it taxable? and if so under what category, LTCG, STCG or is full 50K taxable as simply other income?
Your inputs would be great. Thanks a lot in advance.
CAclubindia
