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Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2013 Assume that XYZ had a company stock 100 nos with him. The relevant details are :

Date of Purchase XYZ is August, 2010
Purchase Cost in August, 2010 @ Rs.1500 per stock for 100 Nos..... Rs. 150000/-
Date of Transfer to CDE (As GIFT) is August, 2012
Market Value on the date of transfer i.e. August 2012 is @ Rs. 1200 is Rs. 120000/-

CASE (A) CDE is selling those stock to day in Jan, 2013
market value of that stock today i.e. in Jan 2013 is Rs. 1000
So selling cost for CDE for 100 Nos is 100 x 1000 = Rs. 100000/-
Purchase cost (Transfe cost by XYZ to CDE) in Augsut, 2012 = Rs. 120000/-
SO THE LOSS INCURRED BY CDE is Rs. 120000 - Rs. 100000 = Rs. 20000 (Short Term)

Which is the tight way to consider
Becuase in tax Angle?

NILESH GUPTA

NILESH GUPTA (Expert)
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14 January 2013 This is a wrong calculation. In case of Gift transfer the Cost of Investment and Period of holding is to be taken of previous owner from whom gift is received. So in this case cost will be Rs. 1,50,000 and peirod of holding will be from August 2010.

Regards,
Nilesh Gupta

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