Capital gains tax on shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2012 Assessee ‘A’ sold 54,570 shares in Company ‘C’, in F.Y. 2012-2013, pursuant to a buy-back offer by the Company, at a price of Rs.15/- per share. Out of 54,570 shares, 12,000 shares were acquired prior to 1st April, 1981. The price of these shares was Rs.1.89 per share as on 1st April, 1981. Thus, the capital loss on the indexed price of 12,000 shares works out to Rs.13,234/-.
The remaining 42,570 shares were acquired, on various dates, after 1st April, 1981, either as a bonus issue, or arising out of amalgamation/stock splits with associated companies. The cost of acquisition of these shares is taken as NIL, and do not qualify for cost indexation.
My query is: Can assesse ‘A’ set off the capital loss of Rs.13,234/-, as above, against the capital gain on the balance of shares, and pay capital gains tax @10% on the net capital gain?

Amol S Joglekar

Amol S Joglekar (Expert)
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20 November 2012 Capital asset is one and same in your case. Long term capital loss can be very well adjusted against the long term capital gain.

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2012 Thank you, Expert Shri Joglekar. Would the answer be different if shares were held in different companies?

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