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Practical issue in capital gain on shares

Others 902 views 5 replies

Dear Friends,

In FY 2011-12 I purchased the shares of Suzlon Energy Ltd. as on-

1. on Apr.25,2011 -500 shares @ Rs. 55

2. on June 25,2011-800 shares @ Rs. 65 each

3. On Dec,31 2011- 1500 shares @ rs. 79 each

On Jan 25,2011 sold 2000 shares @ Rs. 88 each

Considering  the above facts please advise on which basis valuation of stock of 800 shares to be made-FIFO or Weighted Avg, is there any guidance note to this effect or any circular issued , pls let me know....

I will be thankful for your advise...

 

 

Replies (5)
Sorry in the above ques Jan 25,2011 should be read as Jan 25,2012.

FIFO Method should be used.  Ref Circular 768 Dt 24.04.1998

https://www.incometaxindiapr.gov.in/incometaxindiacr/contents/CBDTFiles/Circulars/CBDTLaws/HTMLFiles/sec45_768_98.htm

 

FIFO method as used in valuation of inventory should be used in case of valuation of shares also.

Originally posted by : Ashish

FIFO Method should be used.  Ref Circular 768 Dt 24.04.1998

https://www.incometaxindiapr.gov.in/incometaxindiacr/contents/CBDTFiles/Circulars/CBDTLaws/HTMLFiles/sec45_768_98.htm

 

agree....:-)

FIFO Method should be used.  Ref Circular 768 Dt 24.04.1998


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