LTCG on sale of listed equity shared in sched 112A?

Filing my return through a C.A is not the answer to the queries I've raised. Don't bother replying if its not going to be helpful.

The amount of LTCG is included only for the purpose of computation of Total Income. Tax is not calculated on this amount by the utility when the amount is less than Rs. 1 lac (Or calculated at the reduced applicable rate on the amount exceeding Rs. 1lac). But don't  forget to fill the schedule SI (Special Income) and the quarter wise detail of inflow of the LTCG.

Thanks for your reply, but even though the amount of LTCG in sched 112A is less than 1 lac, its being considered as part of the total income for tax calculation. I've reverse computed the tax payable on total income in Part B- TTI as per the utility and that value is matching with tax computation on Total income including LTCG. Worst part is rather than 10%, marginal tax rate as per total income i.e. 30% has been applied to LTCG as well.

Thanks so much for your reply, I think I missed confirming the Schedule SI (Special) which was causing this issue. Now it is correctly excluding the LTCG amount from the Total income and also computing tax correctly.

Samantha J 

Can you please respond, how would one input data in Schedule 112a in cases of M&A, e.g. Gruh Shares bought before 31 Jan 2018 and now Bandhan bank shares being sold. Merger took place in ratio of 1000 gruh exchanged for 568 of Bandhan. The record date for merger was Oct 17, 2019.

Suppose 568 shares of Bandhan are being sold now.

In shares sold we put 568 shares and current market price.

In cost of acquisition , can we put total cost of purchase of 1000 shares of Gruh? since that is equivalent of 568 shares of Bandhan now being sold?

In FMV per share, we will need to put Gruh price as on 31 Jan 2018 which is 593 (or do we  put FMV equivalent for 1 share of Bandhan which would be 593 multiplied by the merger ratio1000 divided by 568 = 1044. The Income Tax authorities will not be able to match the ISIN put of the share being sold i.e. Bandhan with the FMV and there will be mismatch. But what is the solution in that case?

Dear Sir,

In my opinion, you have to put the total cost (to you) of the equivalent No. of GRUH shares as  on the date of merger. The utility (Form 112A) will automatically give the benefit, if any, of the FMV (of GRUH shares) as on 31-01-2018.

Thank you Shri Amar, but I still need to input a price for FMV per share in the given column in Schedule 112A - as you will see in my detailed query above.

Dear Sir,

Yes, it is correct. But logically you have to fill the FMV as on 31-01-2018 of 1.7606 shares (1000/568) & not of 1 GRUH Shares. I am, however, not sure whether it is a correct proposition.

Imagine hypothetically for a moment if the ratio was 1 Bandhan share for 100 Gruh shares. Therefore, it is only logical to expect and to convince IT authority to concede to proportionate equivalence or else the grandfathering benefit passed by legislation would not accrue fully. Anything short of that would mean shortchanging an assessee on what has beet legally granted.