Capital Gains Query in case of Demerger

I am having 1000 equity shares of A Ltd. since 1992-93. In 2009, A Ltd. demerged a division and a new company was formed in the name of B Ltd. Accordingly shares of B Ltd. were alloted to me and today I am having 700 equity shares of A Ltd. and 300 equity shares of B Ltd. Now when i sell the shares of B Ltd., how do I calculated the period of holding for the purpose of calculating long term / short term capital gains? Also, from when do I get the indexation benefit?

Please advise.

Replies (4)

 

From formed date of B Ltd.Calculate holding period of shares.

I think that Period of Holding and Indexation benefit will be considered from 1992-93.Because original shares were allotted to you in the year of 1992-93.

period of holding should be calculated as including the priod of holding of original shares in respect of which shares in the resulting company is received.

for the purpose of indexation, the previous year in which shares is acquired in such resulting company is relevant. therefore, indexation of such previous year is to be taken in to consideration

PERION OF HOLDING SHALL INCLUDE THE PERIOD FROM WHICH SHARES WERE ORIGINALLY HELD BY YOU IN A LTD

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