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Capital gain on shares

491 views 4 replies

Devendra

Articled assistent

24 Points Posted on 18 November 2011

Last year I had 25 shares valued each at 100 so total value=2500.

I sold 15 out of these at Rs.1800.

So should I,

1.value the remaining 10 shares at 700(2500-1800). or

2.value the remaining 10 shares at 1000(2500-1500[cost of 15 shares) and calculate capital gain?\

Please answer and explain whether to compute capital gain or not as the all shares are not sold?

And at which value I should record?

Replies (4)

U S Sharma

glidor@gmail.com

21068 Points Posted on 18 November 2011

Originally posted by : Devendra

Last year I had 25 shares valued each at 100 so total value=2500.

I sold 15 out of these at 1800.

So should I,

1.value the remaining 10 shares at 700(2500-1800). or

2.value the remaining 10 shares at 1000(2500-1500[cost of 15 shares) and calculate capital gain?\

capital gain is .........1800-1500 = 300

Please answer and explain whether to compute capital gain or not as the all shares are not sold?

And at which value I should record?

CA RICHA BADALIA

CA CS

1682 Points Posted on 18 November 2011

There would be a capital gain of 1800-1500=Rs. 300(short term /long term gain will depend on the period of holding)

Remaining 10 shares will be valued at cost ie Rs 10*100=1000(assuming it to be long term in nature)

CA RICHA BADALIA

CA CS

1682 Points Posted on 18 November 2011

Even if you sell 1 share capital gain/loss would arise.

Vikas

1135 Points Posted on 19 November 2011

not necessary ms. Richa...u/s.94(7)/(8)...there may not b anyprofit or loss if good amount of dividend is earned.... but the ans to the que is correctly stated by Ms. Richa....