Determining of long/short term capital gain on shares..

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Abhay Singh (Querist)

14 June 2013 sir,
i want to know about valuation process of shares that has been held as an investment??? and how we calculate long term and short term gains/loss at the time of its sale??

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

16 June 2013 Shares held for less than 12 months can be treated as shorterm asset and hell 12 months or more can be treated as long term capital asset under income tax

CA. Sunil Kumar

CA. Sunil Kumar (Expert)

16 June 2013 As per AS-13 "Accounting of Investments" - Long Term Investments are valued at cost subject to impairment.

and Current Investments should be valued at cost or fair market value which ever is low.

Share sold after 1 year of purchase are considered as Long Term as per Income Tax Act.

and tax will be calculated accordingly as per provision of Income Tax Act

Abhay Singh

Abhay Singh (Querist)

17 June 2013 bt my question is that how we know that which share i have sold,means can we use FIFO/WT.AVG. method. suppose, i have 1000 sh @10, and i purchased 200 shares@20/- again, and sold 100sh@30/-, then haow i get that which share i have sold previous one or next one. please let me know..

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