LONG TERM CAPITAL GAIN

Dear All


Please help me,

One of my client have a DMAT account, before opening the DMAT account he hold some shares in PAPER form in 2007. during F.Y.2009-10 he has sold this shares though DMAT account, He has the Sales broker note, but doesn't poseses even the xerox copy of the share certificate.

For filing of ITR for F.Y. 2009-2010, how he will be calculate the Lonf term capital gain, if the original share purchase documents is not traceable, if i will add the sales consideraion of that shares in CAPITAL , then what is the problem.

Please inform me the other way to followes to file the ITR with lower risk

Replies (4)

The original cost of acquisition of shares in physical form will be the cost of acquistion of shares. The sale consideration less the cost will be the long term capital gains to be shown in the ITR as exempt income. So the most important thing required will be the original cost of purchase of shares

yes agree with aditya.. Its a long term capital gain but you will need the date of cost of acquisition.. cost of purchase of shares....may be the bank entry or anything can help you out....

My question is, my client doesn't poseses any supporing documents to ascertain the cost of acquisition. please tell me how i wll make his ITR.

and where i will show in the B/s the sales cosideraion,

please tell me the impact

(i) total sales consideration to add with capital , because  long term capital gains are exempt from ioncome tax

or

(ii) Total sales cosidearion to shown as LTCG  in ITR and that amount is exempt from IT

 Please inform me

 

 

If balance sheet of the individual is regularly being prepared then the cost of acquisition must be there in the balance sheet itself.

If not there then he must be knowing the approximate cost of purchase and also when were the shares acutally purchased.

Adjustment for the same should have been made in the balance sheet for the same.

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