Tax treatment of Cairns Preferential Shares

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Rahul (Querist)
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16 August 2017 I got 4000 Preferential shares of cairn India which is now merged with Vedanta. i got allotment few days bak. if I sell them now do I need to pay short term capital gain or this sell is exempted ? Please advise

CA Suresh Jain

CA Suresh Jain (Expert)
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16 August 2017 What is the date of allotment of Pref. shares of Cain originally allotted, what is the date of conversion and what is date of sale ?

Rahul

Rahul (Querist)
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16 August 2017 Preferential share allotted on 10 August 2017. Sale is not yet done since these are allotted just a week back. but those are allotted on account of cairn merging with Vedanta. Original shares(1000 nos were bought in 2012) and post merger I got 1000 shares of Vedanta and 4000 preferential shares with 7.5%interest getting matured in Oct 2018.

CA Suresh Jain

CA Suresh Jain (Expert)
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17 August 2017 In your case share profit shall be taxable on the date of sale/maturity

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