I AM AN INDIVIDUAL AND SHAREHOLDER OF TVS MOTOR COMPANY LTD EQUITY SHARES OF 1000.LAST FINANCIAL YEAR 31-03-2026. THEY ALLOTTED FOR EVERY 1 EQUITY SHARE OF THE SAID COMPANY 4 CUMULATIVE NON CONVERTIBLE REDEEMABLE PREFERENCE SHARES ALLOTTED ON AUGUST 2025.THERE IS NO COST FOR THE SAID SHARES.DURING THIS YEAR THEY REDEEMED THE PREFERENCE SHARES @ Rs.10 PER SHARE WITH INTEREST @ 6% .MAY I CLAIM THIS AMOUNT IN SHORT TERM CAPITAL GAIN OR DEEMED DIVIDEND OR INCOME FROM OTHER SOURCES.KINDLY CLARIFY FOR TAXATION.
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CAPITAL GAIN REG
Replies (1)
The taxpayer should split the taxation into two parts:
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Principal (Rs. 10/share): Claim as Short-Term Capital Gain (STCG) since the cost of acquisition is Nil and the holding period is less than the required long-term threshold.
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6% Interest/Dividend: Claim as Income from Other Sources (IFOS), taxable at normal slab rates.
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