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Cost of aquisition- merger after jan 2018

Tax queries 170 views 1 replies

Peeyush

Manager

38 Points Joined November 2014

I have a question for which again I couldnt find clarification.

I had bought Bharat Financial inclusion 600 Shares in december 2012 @ 170 per share
now after being merged with Indusind Bank I have received 383 shares of IndusInd bank effective from July 4th 2019
my questions are

1. How does one calculate the cost of acquisition of the Indusind share?
2. Will the grandfathering clause apply as original shares of Bharat finacial were aquired before Jan 2018 but the merger happened after that? could not find a sound clarification on this.
3. What will be the capital gains in this case if I sell them now ?

Replies (1)

Krishna Chaudhary

Accountant

4531 Points Joined February 2017

according to my knowledge the cost of acquisition will be the actual cost to paid to purchase the share and grandfathering concept apply and you need to pay tax after applying the concept.

you can search the method of calculating capital gain by grandfathering concept and calculate it by yourself.

if you face any difficulty you can ask me for calculating your capital gain.