I sold a few shares in last fiscal year, which were purchased much before Jan 2018.
For calculating capital gains, I used this:
Sale price - (market price as on Jan 2018)
But my accountant this provision has been grandathered and I need to use the actual purchase price and not the market price on Jan 2018.
Is he correct?
Your assumption is correct. i.e Sale price - (market price as on Jan 2018)
'Schedule 112A' takes care of it, while filing ITR 2 or 3.
Sorry, didn't get it. So, we still have the provision to use Jan 2018 market price as the cost basis?
So, it's not 'grandfathered' yet?
I think you have not understood the grandfathering.
You have choice to consider the COA as your purchase cost or the FMV as on 31.01.2018, whichever is higher.
So, in turn your LTCG gets reduced if FMV is higher than the Purchase cost.
SSGS and Associates
Chennai
CA Inter
View Details
CAclubindia
