Valuation & taxation of Shares if cost is not available

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This discussion addresses the challenge of determining the cost basis for shares acquired between 1989 and 1995, especially when the original purchase cost and transaction history are unavailable due to the client's passing. The advice provided suggests using a Fair Market Value (FMV) as of 31.01.2018 for valuation, with bonus shares having a cost of zero. This approach simplifies the calculation of Long-Term Capital Gains (LTCG) for tax purposes, even without precise script-wise cost bifurcation.

TRIBHUVAN PUROHIT

TRIBHUVAN PUROHIT (Querist)

21 November 2021 Respected Sir,
I am doing accounting for one of the person wherein now I am facing one problem, they have few scripts bought at the time of allotment starting from year 1989 to 1995.
There are several bonus and split transactions occurred during this time period
Now the client expired and her spouse being joint holder also in process of complying all relevant formalities including transfer of shares. few scripts were sold in march by the spouce for her treatment but I am unable to ascertain the cost price as I don`t have the exact cost and split transaction history
Even if I consider FMV as on 31.03.2018, I have to ascertain cost of those few scripts.
Will someone please resolve this as I have to file the ITR and before filing I have to go through all aspects

Regards

Tribhuvan

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

21 November 2021 For bonus shares take the COI as '0'.
For others take FMV as on 31.01.2018; from the list in the link....
https://maxutils.com/income/ltcg-bse31jan

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TRIBHUVAN PUROHIT

TRIBHUVAN PUROHIT (Querist)

23 November 2021 Respected Sir,
Thanks for replying,
the FMV i shall take it from the list provided but please let me know how to consider the valuation scriptwise as mentioned in my email the scripts bought during the period 1989 to 1995 and I have only total investments cost no script wise bifurcation

Regards

Tribhuvan

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

23 November 2021 As you will be taking FMV of each script as on 31.01.2018 as COA, you do not require bifurcation any more. LTCG will be calculated from the FMV itself.

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