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Clarification on LTCG/STCG on SWAP of shares

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TaxDoubter

33 Points Posted on 08 January 2021

I received UNION BANK OF INDIA shares after the merger of Andhra Bank & Corporation Bank. I want to clarify the following to calculate the STCG / LTCG.

1. Record Date : 23-03-2020 (Opening Price 28.75 (BSE) and 27.15 (NSE)

2. Allotment Date : 01-04-2020 (Opening Price 29.9 (BSE) and 29.2 (NSE)

3. Actual Allotment Date :16-04-2020 (I received the shares in my Demat A/c on this day)

I would like to know whether the Record Date(1), Allotment Date(2) or Actual Allotment Date(3) should be considered for calculating STCG / LTCG.

Which price to consider? BSE or NSE?.

Finally, I have incurred expenses on buying of Andhra Bank. Can I use the same expenses for Union Bank of India?

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Quick Summary

This discussion seeks clarification on calculating Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG) following a share swap due to a merger. The user received Union Bank of India shares after the merger of Andhra Bank and Corporation Bank and needs to determine the correct date (record date, allotment date, or actual allotment date) and price (BSE or NSE) to use for tax calculations. They also want to know if expenses incurred on the original shares can be claimed against the new shares.