Query about ltcg on shares

Tax queries 219 views 7 replies

A B Kundu

Professional

1427 Points Joined August 2012

Please state how to disclose the LTCG from selling of equity shares in ITR-3 of an Individual and applicability of Sec.112A on the following transactions (the information have been received from the Equity P&L Statement generated by the Broker) :-

Buy Date	Sell Date	Quantity	Security	Acq. Date	Acq. Type	Cost Basis	Proceeds	Short Term Gain	# Long Term Gain
14-08-2014	20-07-2018	750	Eastern Silk Industries Ltd.	14-08-2014	OffMarket	1672.5	1980.3	0	307.8
28-02-2014	13-04-2018	100	ICICI Bank Ltd.	28-02-2014	Split	20877	28633.26	0	7756.26
28-02-2014	11-05-2018	100	ICICI Bank Ltd.	28-02-2014	Split	20877	30859.51	0	9982.51
28-02-2014	24-05-2018	290	ICICI Bank Ltd.	28-02-2014	Split	60543.3	85313.39	0	24770.09
10-03-2014	20-07-2018	112	JSW Steel Ltd.	10-03-2014	OffMarket	599.2	859.81	0	260.61
13-03-2014	20-07-2018	20	JSW Steel Ltd.	13-03-2014	Split	1857	6023.82	0	143.82
23-04-2014	20-07-2018	200	Mangalore Refinery And Petrochemicals Ltd.	23-04-2014	OffMarket	12840	16160.26	0	3320.26
23-04-2014	20-07-2018	100	Oriental Bank of Commerce	23-04-2014	OffMarket	23900	7046.51	0	-16853.49
04-07-2014	20-07-2018	2	Reliance Capital Ltd.	04-07-2014	Demerger	1293.05	676.85	0	-616.2
04-07-2014	20-07-2018	2	Reliance Home Finance Ltd.	04-07-2014	Demerger	18.85	102.18	0	83.33
04-07-2014	19-04-2018	3	Reliance Infrastructure Ltd.	04-07-2014	OffMarket	2375.7	1383.46	0	-992.24
04-07-2014	20-07-2018	12	Reliance Power Ltd.	04-07-2014	OffMarket	1307.4	356.29	0	-951.11
22-08-2014	20-07-2018	1	Shristi Infrastructure Development Corporation Ltd.	22-08-2014	OffMarket	135.55	172.71	0	37.16
22-08-2014	29-10-2018	19	Shristi Infrastructure Development Corporation Ltd.	22-08-2014	OffMarket	2575.45	2963.52	0	388.07
07-07-2014	16-05-2018	100	Tata Metaliks Ltd.	07-07-2014	OffMarket	7555	81298.17	0	73743.17

The red marked figures were not given in the generated statement (don't know why), I have calculated those figures.

Now, please guide, Whether Sec.112A is applicable in the above cases? In my opinion, where the shares were acquired off-market, Sec.112A shall not be applicable as STT was not paid at the time of acquisition.

If Sec.112A is not applicable, then where to show these gains in the ITR-3 CG tab?

Replies (7)

Pranav Aggarwal

525 Points Joined April 2017

first of all pls tell how u have purchased shares from off market after listing of company

A B Kundu

Professional

1427 Points Joined August 2012

Originally posted by : Pranav Aggarwal
	first of all pls tell how u have purchased shares from off market after listing of company

Off market transaction is possible through DIS (Delivery Instruction Slip).

Kapadia Pravin

17264 Points Joined December 2018

Off market purchase is without STT payment and so for LTCG holding period is 3 years.

You get indexation on such transactions and tax rate is 20% + Surcharge

in the ITR3 under CG schedule Part B under heading other assets you can show.

A B Kundu

Professional

1427 Points Joined August 2012

Originally posted by : Kapadia Pravin
	Off market purchase is without STT payment and so for LTCG holding period is 3 years.You get indexation on such transactions and tax rate is 20% + Surchargein the ITR3 under CG schedule Part B under heading other assets you can show.

Okay, and what will be the treatment for shares acquired through Demerger and Split?

Kapadia Pravin

17264 Points Joined December 2018

@ A B Kundu
split is simple. it just increased number of shares and hence no change in amount.

For demerger, you refer to company correspondence as the proportion ratio they are announcing with example.
That will help you obtain value for demerger companies individually.

A B Kundu

Professional

1427 Points Joined August 2012

Originally posted by : Kapadia Pravin
	@ A B Kundusplit is simple. it just increased number of shares and hence no change in amount.For demerger, you refer to company correspondence as the proportion ratio they are announcing with example. That will help you obtain value for demerger companies individually.

So, in case of split and demerger, Sec.112A would be applicable, right?

Further, here in this statement, already the cost price has been given for each type of acquisition. Can't we use such cost for the purpose of Sec.112A?

Kapadia Pravin

17264 Points Joined December 2018

Usually company going in for split, demerger etc provide details of impact on income tax and the procedure and cost of acquisition , Date of Acquisition etc to be considered for taxation