Gopi (Engineer) (123 Points)
23 June 2023I sold a few shares in last fiscal year, which were purchased much before Jan 2018.
For calculating capital gains, I used this:
Sale price - (market price as on Jan 2018)
But my accountant this provision has been grandathered and I need to use the actual purchase price and not the market price on Jan 2018.
Is he correct?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160963 Points)
Replied 23 June 2023
Your assumption is correct. i.e Sale price - (market price as on Jan 2018)
'Schedule 112A' takes care of it, while filing ITR 2 or 3.
Gopi
(Engineer)
(123 Points)
Replied 23 June 2023
Sorry, didn't get it. So, we still have the provision to use Jan 2018 market price as the cost basis?
So, it's not 'grandfathered' yet?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160963 Points)
Replied 23 June 2023
I think you have not understood the grandfathering.
You have choice to consider the COA as your purchase cost or the FMV as on 31.01.2018, whichever is higher.
So, in turn your LTCG gets reduced if FMV is higher than the Purchase cost.
CAclubindia
