I was alloted 50 Shares of Mac Charles (India) Pvt ltd in 1988 for Rs 10 each. Subsequently Company alloted 1:1 Bonus shares. I sold all the 100 Shares at various levels between 715 to 725. Avg value is Rs 718.88. I want to know the Long term capital gains Tax calculation. Thanks in advance
To solve this, find the Jan 31, 2018, market price for Mac Charles Ltd. Use that price as your "cost" for all 100 shares (both original and bonus) due to grandfathering rules. Subtract this total cost from your total sale value of ₹71,888. If the resulting gain is under ₹1.25 Lakh for the year, it is tax-free.
Thanks Aashok F.C Sorry for asking this. Tax Free means exempt income like PPF interest. My price of shares on 31st jan 2018 is Rs 425.
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