Fair market Value in case of demerger
This query is : Resolved
Quick Summary
15 July 2024
Dear Experts,
The assessee has purchased 1000 shares of company A in 2010. The company got demerged in 2023 and 1000 shares of company B(demerged entity) were issued. The assessee sold shares of company B in FY 2023-24 resulting in long term capital gain on listed equity shares.
What would be fair market value of shares of company B as it was not listed separately before 31/01/2018? FMV of original company is to be taken as a whole or as per the demerger ration of original company and demerged company?
Please guide.
Thanks
The assessee has purchased 1000 shares of company A in 2010. The company got demerged in 2023 and 1000 shares of company B(demerged entity) were issued. The assessee sold shares of company B in FY 2023-24 resulting in long term capital gain on listed equity shares.
What would be fair market value of shares of company B as it was not listed separately before 31/01/2018? FMV of original company is to be taken as a whole or as per the demerger ration of original company and demerged company?
Please guide.
Thanks
Dhirajlal Rambhia
(Expert)
15 July 2024
As per demerged ratio.
Dhirajlal Rambhia
(Expert)
25 August 2024
You are welcome.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Capital Gail Exemption Certificate
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Taxation of crypto futures in India Fy 2026- 2027
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
