How to calculate STCG and LTCG and date of cost of acuisation

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Daya

Daya (Querist)
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09 December 2024 How to calculate capital gain when after issuing bonus share as well as purchased share sold.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 December 2024 If you hold them for more than 12 months, they qualify as long-term capital assets, and gains from them will be taxed as Long-Term Capital Gains (LTCG). Otherwise, they are Short-Term Capital Gains (STCG). The holding period for bonus shares begins from the date they were allotted to you.
For original shares the cost of acquisition is the actual price you paid for the shares, including any additional costs, if any. Since bonus shares are issued without any cost, their cost of acquisition is typically considered as zero for tax calculation purposes. Rest of procedure is same as usual.