Capital gain

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This query is : Resolved

Chandresh Sheth (Querist)

11 August 2012 If a assessee has invested Rs. 1,00,000\= in 1000 equity shares in pvt ltd co in month of OCt 2005.

in the month of oct 2007 he received 500 bonus shares from the co.

In the month of Oct 2009, he sold 1500 shares, for Rs. 5,00,000\=.

My querry is how to calculat Short Term Capital Gain and Long Term Capital Gain.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

11 August 2012 1. In case of shares, if the shares are held for a period of 12 months or more, then they are long term capital asset and LTCG shall arise.

So, in the above case, LTCG will arise on both original shares and bonus shares.

However, since the date of acquisition is different in both the cases, computation shall be done separately.

2. In case of bonus shares cost of acquisition is NIL.

So, LTCG shall be computed as under:

On original shares
Sale price
Less: Indexed cost of acquisition

On bonus shares whole amount shall be taxable as LTCG.

Chandresh Sheth

Chandresh Sheth (Querist)

11 August 2012 Dear Siddhartha

thanks for ur reply

but i think above criteria for listed in stock exchange, but
in our case holding is in non-listed private limited company.
there for what is ur opinion.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

11 August 2012 The period of holding criteria applies to ALL shares, whether listed or unlisted.

Please read Section 2(42A).

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