Long term capital gains on inherited equity shares

This discussion clarifies the calculation of long-term capital gains (LTCG) tax for inherited equity shares. When shares were allotted to the deceased before 2001, the inheritor's cost of acquisition is generally the fair market value as of 31st January 2018. This 'grandfathering' provision means the value as of 1st April 2001 is not typically used. The cost is the lower of the fair market value on 31st January 2018 or the full value of consideration.