Sir
My querry is on Inheritance of Shares, if & when I do, from my parents. Once I do inherit the shares, and suppose I want to sell part of those, in that case ..
(a) how would the Capital Gains tax, if any, be calculated
(b) in case I do not have record of the Cost of acquisition of these shares, in that case how does one arrive at the Capital Gains tax on Sale of such (inherited) shares
Awaiting reply
H.P. from Mumbai
Hi...
Yes, it will attract Capital Gains tax when you sell the shares. and the cost of acquisition will be cost paid by your parents.
Regards,
Babita
here the applicability of capital gain tax will depend upon wheather the shares are listed or not
if listed,no capital gain tax,as u r liable to pay STT(SECURITY TRANSACTION TAX)
If not listed,capital gain tax will apply
note:indexation will apply from the date where your parents acquired for shares
so if they are not listed computation are as follows
sale consideration=2000000
less:indexed cost of indexation=1500000
long term capital gain=500000
Thanks for the reply!
Both of you are basically saying that Capital Gains if chargeable.
But, if it is a Long term investment (more than 1 year) AND it is sold, is it not then Exempt from Tax as a Long term Gains and not Short Term (less than 1 year) ?
Regards...
CAclubindia
