Capital gain on inherited shares

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies how to calculate capital gains tax on inherited shares. When selling shares you originally purchased, your own purchase cost is used. For shares inherited from a parent, the cost of acquisition is generally considered the value at the time of inheritance, not the original purchase price by the deceased. This distinction is crucial for accurate tax reporting.

Pooja

Pooja (Querist)
Follow

10 September 2025 I had purchased 1000 shares of a company in March 2024 and sold them in May 2024. After the death of my father I inherited 5000 shares of the same company in October 2024 which my father had purchased in the year 2019. For computation of capital gains, what will be the cost of acquisition of the shares I sold in May 2024.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

10 September 2025 1000 shares sold by you in May 2024 were purchased by you in March 2024; so your own purchase cost...
You inherited 5000 shares in October 2024.... There were no shares from May to October 2024 in your account...

Pooja

Pooja (Querist)
Follow

11 September 2025 I had purchased 500 shares of BHEL in March 2023. After the death of my father 200 shares of BHEL were transmitted in my account in October 2024 which my father had purchased in the year 2020. I sold 200 shares of BHEL in March 2025. For computation of capital gains, what will be the cost of acquisition of the shares I sold in March 2025?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

11 September 2025 As per the rates you purchased 500 shares in March 2023.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

19 September 2025 Good Luck...

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!