03 July 2023
A client has inherited listed shares from his brother. All these shares were purchased before 31st Jan, 2018 but exact date of acquisition and cost of acquisition is not available as many of these shares were earlier held in physical form and later dematerialized.
What should be shown as the cost of acquisition in case some shares have now been sold by the client? Can we consider FMV as on 31st Jan, 2018 also under cost of acquisition or any guidance available under the Act?
If anyone has dealt with such case practically then please advise.
03 July 2023
Assessee is at liberty to choose higher of the COA from actual cost or the FMV as on 31st Jan 2018. Here say, even if you have paid higher price but you wish to claim lower cost as on 31st Jan; which should be acceptable. In case the actual cost were lower then the said FMV, then also it is acceptable. In either case the principle is well accepted by department and professional. So, none other supporting evidence required.
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