CAPITAL GAIN OF EQ SHARE

This discussion clarifies how to calculate the capital gains tax when Reliance Industries demerged its Jio Financial services. The cost of acquisition for the new Jio Financial shares should be determined by apportioning the original cost of Reliance Industries shares based on the demerger ratio. Specifically, 95.32% of the original cost is attributed to Reliance Industries Limited shares and 4.68% to Reliance Strategic Investments Limited (Jio Financial).