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Capita Gain on Sale of Right Shares

This query is : Resolved 

26 November 2025 Capital Gain When a person Receive RE from Another Holder and Then Subscribe right issue and sale these shares. Whether RE paid for acquiring Right for subscribe right share will add in cost of purchase. Example RE paid Rs. 10/- + Right Issue price paid to company Rs. 100/- so when this share sale Cost purchase of share will 110/- or Rs. 100/-

27 November 2025 Yes — the amount paid to acquire Right Entitlements (RE) from another holder is added to the cost of acquisition of the right shares. In your example, the cost of purchase will be ₹110 (₹10 RE + ₹100 issue price), not just ₹100.

- If REs are received free of cost as an existing shareholder, their cost of acquisition is nil.
- If REs are purchased from another holder, the purchase price paid for RE becomes part of the cost of acquisition of the right shares subscribed.


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