ONE OF MY CLIENT PURCHASED 500 SHARES ON 1995 FACE VALUE OF THE PER SHARES 10/-. HE SOLD THE SHARES IN FINANCIAL YEAR 2018-19 WORTH OF RS 216000/- AND 206781/- RS 196065/- AND 210724/- AND 211451/- TOTAL VALUE OF SALE CONSIDERATION IS RS. 10,41021/-.
NOW MY QUESTION IS LTCG IS NOW TAXABLE @ 10%. WE CAN DEDUCT THE FMV AMOUNT AS ON 31/01/2018, U/S 55(2)AC, REMAINING AMOUNT WILL TAXABLE UNDER U/S 112A.
PURCHASE FACE VALUE OF PER SHARE AS ON YEAR 1995 IS RS 10/- SALE VALUE IS RS 2160/- IF FAIR MARKET VALUE OF THE SHARE AS ON 31/01/2018 IS RS. 1900/- DIFFERENCE AMOUNT RS. 260/- TAXABLE UNDER SECTION 112A.
PLEASE CLARIFY ME
REGARDS AND THANKS IN ADVANCE WAITING FOR YOUR REPLIES SIR
BUT TOTAL LTCG IS 10,41021/- BECOME NON TAXABLE BECAUSE HE IS SENIOUR CITIZEN, I CAN FOLLOW THE SAME FORMULA TO ALL CAPITAL GAIN EARNED IN DIFFERENT DATES.
CAclubindia
