SLBM and Income Tax
This query is : Resolved
19 October 2025
As per the established procedure, the capital gains on sale of shares are determined on the basis of "first in first out" and period of holding
Now the query. I have 100 shares of a company ABC purchased in 2 lots of 50 each, first @ Rs 500 each and second @ Rs 600 each. I lend 50 shares under SLBM mechanism and sell the balance 50 @ Rs 1000 each. Do I calculate the capital gain using acquisition cost of Rs 500/ shares (lent under SLBM) or Rs 600/ share (held by me in my demat account and actually sold)
Now the query. I have 100 shares of a company ABC purchased in 2 lots of 50 each, first @ Rs 500 each and second @ Rs 600 each. I lend 50 shares under SLBM mechanism and sell the balance 50 @ Rs 1000 each. Do I calculate the capital gain using acquisition cost of Rs 500/ shares (lent under SLBM) or Rs 600/ share (held by me in my demat account and actually sold)
20 October 2025
SLBM does not change the underlying ownership of the lent shares—lending shares under SLBM is not considered a transfer for capital gains purposes. The shares are only considered "transferred" for tax purposes when they are actually sold.
When you sell 50 of your 100 shares, according to FIFO, these will be considered to be from Lot 1 (those bought @ ₹500 each), as these were acquired first.
When you sell 50 of your 100 shares, according to FIFO, these will be considered to be from Lot 1 (those bought @ ₹500 each), as these were acquired first.
20 October 2025
Thanks for your prompt reply
20 October 2025
You are welcome...
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