LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

LTCG on equity of demergered shares

Rani (None) (211 Points)

17 September 2021

Hello,

I had a few shares of Arvind Ltd bought before 2018 Jan 31st. After demerger got a few shares of Anup Engineering and Arvind Fashions Ltd. Iam planning to sell them, but could not find FMV of these stocks on Jan 31,2018. In such cases how is LTCG calculated?

Thanks in advance

Reply
Follow
Share

6 Replies

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 20 September 2021

LTCG ARISES ONLY WHEN SHARES ARE SOLD.

1 Like

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 21 September 2021

Not necessarily. LTCG and LTCL may arise on unlisted and delisted stocks without the sell transaction.

Many companies automatically cancel the shares and delete them from your demat account without your knowledge or without your consent.

https://www.ndtv.com/business/essar-steel-announces-cancellation-of-shareholder-holdings-2157834#:~:text=In%20an%20e%2Dmail%20statement,India%20Company%20Secretary%20Pankaj%20S.&text=Consequently%2C%20the%20entire%20existing%20issued,2019%2C%20the%20company%20secretary%20said.

Such transactions can also cause LTCL

1 Like