Hi,
My client had purchased 100 shares in a private limited company in 1975 @ Rs. 10 per share. He wants to sell these shares to a third party @ Rs. 1,000 per share.
Can I take the FMV of the shares as 1 April 2001 and calculate the capital gain.
How do i calculate the FMV of the shares as on 1 Apil 2001
I have prepared a small table. Request you to let me know which of the scenarios is correct. Please feel free to indicate any mistakes / error in the same.
Thanks and regards,
CA Chandresh Sanat Jatania
| a | b | c | d=(c*b)/a | e | f=e-d | |
| Scenario | CIF of base year | CIF year of sale (assumed) | Purchase price | Indexed Cost of acquisition | Sale price | Long term capital gain |
| Base year is 1981 | 100 | 1,165 | 1,000 | 11,650 | 100,000 | 88,350 |
| Base year is 2001 | 100 | 280 | 1,000 | 2,800 | 100,000 | 97,200 |
CAclubindia
