Share Purchase Date Question

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Jignesh Desai (Querist)
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27 August 2010 If I have made 2 groups of shares in Tally . For e.g. , Share Investment (Bombay) & Share Investment ( Jaipur) , & I have a particular scrip in both these groups (qty 100 in each group) , say ITC . In Share Investment (Bombay), I had purchased it on 1-4-06 & in Jaipur , I purchased it on 1-4-10 .Now I sell the 100 shares that I was holding in Jaipur . From Income Tax point of view , have I sold 100 ITC shares purchased on 1-4-10 (since I sold from my Jaipur Portfolio) or 100 ITC shares purchased on 1-4-06 (on FIFO basis) ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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27 August 2010 section 45(2A)

[(2A) 55Where any person has had at any time during previous year any beneficial interest in any securities, then, any profits or gains arising from transfer made by the depository or participant of such beneficial interest in respect of securities shall be chargeable to income-tax as the income of the beneficial owner of the previous year in which such transfer took place and shall not be regarded as income of the depository who is deemed to be the registered owner of securities by virtue of sub-section (1) of section 10 of the Depositories Act, 1996, and for the purposes of—

(i) section 48; and

(ii) proviso to clause (42A) of section 2,

the cost of acquisition and the period of holding of any securities shall be determined on the basis of the first-in-first-out method.

So fifo method DP wise.

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