Long term capital tax due to share split

Tax queries 612 views 1 replies

Hello ,

Good Day. I have a query . We had 400 shares of a company A which we had bought in year 1995 for which the FMV on 31st Jan , 18 is say Rs600. Now in year 2021 the company does a split and due to the split the total shares becomes 1000 (face value Rs 5 to Rs 2) , so increased to 2.5 times the original quantity

We have sold the shares in Dec 2023. Now while filing the tax return , do we split /divide the original value of Rs600/ 2.5 to calculate the New Fair value per shares on 31st Jan or would the original value of Rs 600 per share be used .

Thanks

Replies (1)

Divide the original value of Rs600/ 2.5 to calculate the New Fair value per shares on 31st Jan


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