we have purchased equity shares of one company long back on 2002 , and bonus shares were issued and subdivision into 2 shares happened... thereafter no purchase has been made , now my query is ,On sale of shares in Fy 2020-21, what can I take original COA ,can I use weighted average method or FIFO for computing ORIGINAL COA.
THANKS IN ADVANCE
Its your choice
you may choose either of the methods.
if possible, you may predict when would you sell the remaining shares. if the tax effect is going to be higher in such future year then its better to take wam.
if the tax effect is going to reduce in such future year then its beneficial to take fifo.
CAclubindia
