Capital Gains - CoA calculation

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This discussion explains how to calculate the Cost of Acquisition (CoA) for capital gains tax when shares are received through a company's scheme of arrangement. It uses an example involving CESC Ltd, RPSG Ventures Ltd (formerly CESC Ventures Ltd), and Spencers Retail Ltd to demonstrate the process for determining the CoA of demerged shares and calculating long-term capital gains or losses.

Proloy Samaradivakera

Proloy Samaradivakera (Querist)
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18 June 2024 I bought 100 shares of CESC Ltd on 5Aug17 for Rs 950 a share. (Total CoA = 95000). Some time in 22-Aug-18 by scheme of arrangement by the company, I was allotted 20 Shares of CESC Ventures Ltd and 60 shares of Spencers Retail Ltd - he declared base rate of each share being Rs 10 and Rs 5 respectively. The name of CESC Ventures was later changed to RPSG Ventures Ltd.
I sold all 20 shares of RPSG Ventures in 25Jan24 for Rs 751 per share. How will I arrive at the Cost of Acquisition of the 20 shares I sold, for LTCG calculation.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 June 2024 What was the price of CESC Ltd. on 31.01.2018?
If it is 1074.35
Your COA as on 31.01.2018 is Rs. 1,07,435/-
So COA of 20 shares of CESE Venture is Rs. 42974/-
& cost of 60 shares of Spencers R Ltd is Rs. 64,461/-
Thus there is LTCL of Rs. 27,954/-

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 August 2024 Good luck.

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