Schedule 112A - No LTCL (loss) benefit for shares / MF units purchased before 31 Jan 2018?

Amish (General) (340 Points)

22 July 2020  

I had purchased 1034.3 equity mutual fund units @ 48.342Rs/unit for total Rs 50000 before 31st January 2018

The value of these unit was 63.33 Rs/unit i.e. total Rs 65502.22 on 31st January 2018 (grandfathering)

Then I sold the units in March 2020 for 58.02Rs/unit i.e. total 60010.1 Rs

So I was expecting that effective cost of acquisition will be Rs.65502.22 due to grandfathering and effectively it will treated as Long term Capital loss of about 5492Rs

But when I fill schedule 112A I find that it takes cost of sale value pf Rs60010 as cost of acquisition too. i.e. cost of sale = cost of purchase!!!

So effectively my loss is ZERO.

So I do not get any benefit of grandfathering. How is it logical?

Can anyone clarify?

PS: On the other hand, if there is Long term capital Gain --- it counts it as taxable gain. So loss is not set off but gain is counted!! Strange rule.