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Sale of GIFTED SHARES TAXATION

neha (Others) (420 Points)

07 July 2024

i received some shares few years back which i sold last year , so in itr 2 what should i put as the buy rate for the share? the FMV or the rate of the share on the day they were transferred into my account? plz guide thanx

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183048 Points)
Replied 07 July 2024

Whether you received gift on or before 31.01.2018?

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sabyasachi mukherjee (27642 Points)
Replied 07 July 2024

Post datas

neha (Others) (420 Points)
Replied 07 July 2024

Originally posted by : Dhirajlal Rambhia
	Whether you received gift on or before 31.01.2018?

after 2018

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183048 Points)
Replied 07 July 2024

if the shares were purchased by donor before said date in that case take the FMV of the shares as on said date. Otherwise take his/her purchase cost.

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neha (Others) (420 Points)
Replied 07 July 2024

when u say "FMV of the shares as on said date " u mean the value on 31st jan 2018 right? & if the shares the person got were due to inheritance on passing away for the person then i should look for the price the late person bought the shares?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183048 Points)
Replied 07 July 2024

If the donor had bought it before 31.01.2018, and if you have sold it through any exchange where STT paid, then take the COA as its rate on 31.01.2018.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183048 Points)
Replied 07 July 2024

Refer:: https://finlib.in/fair-market-value-31-jan-2018/

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neha (Others) (420 Points)
Replied 09 July 2024

sir , plz guide on this too as m unable to open a new topic on forum due to technical glitch

if i have 100 shares of a company that i purchased at 2500 before 2018 and later the company gave me another 100 bonus shares so avg cost of purchase for each share is 1250 ,

so when i sell the shares now partly should i take the avg cost of 1250 as cost price or 2500 ?

in capital gain &loss report the buy price is showing as 2500 but position statement shows the avg price per share for whole 200 shares as 1250, m confused on what i should take as cost plz guide.

plz note fmv is abt 900 for this share ...thank u

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183048 Points)
Replied 09 July 2024

Here you have to take COA as FMV as on 31.01.2018, if that is higher & offer capital gain based on that.

neha (Others) (420 Points)
Replied 09 July 2024

Originally posted by : Dhirajlal Rambhia
	Here you have to take COA as FMV as on 31.01.2018, if that is higher & offer capital gain based on that.

is cost price of bonus shares actually zero? broker saying go by capital loss statement as thats ur proof and these r bonus shares on shares bought by u not gifted before 2018

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183048 Points)
Replied 09 July 2024

Finally it will be same, as FMV as of 31.01.2018 is to be taken as COA, when shares were procured before the date. Read more on Grandfathering.

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neha (Others) (420 Points)
Replied 12 July 2024

So plz correct my understanding, if i purchase shares before 2018 at say 190 and the fmv value on 2018 as say 76 , then the COA of the share will be takes as 76 & not 190 ?

neha (Others) (420 Points)
Replied 12 July 2024

So plz correct my understanding, if i purchase shares before 2018 at say 190 and the fmv value on 2018 as say 76 , then the COA of the share will be takes as 76 & not 190 ?