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Stcg/ltcg valuation for demerged shares.

Tax queries 490 views 12 replies

SHIRISH S S

Proprietor

1084 Points Posted on 09 October 2017

I have got shares of Reliance Home finance ltd from Demerger of Reliance Captial ltd. My q is

1) If i sell the same -is it LTCG or STCG

2) how the acquired value is calculated for capital gains.

Replies (12)

Guest

which date it is transfer in your name

SHIRISH S S

Proprietor

1084 Points Posted on 09 October 2017

Aug 2017 I got into my demat account.

Guest

u have not purchase it so u may consider that date

and what is ur date of sale

see the difference if it is more than one year or more

and then apply cg rules for ltcg and stcg

SHIRISH S S

Proprietor

1084 Points Posted on 09 October 2017

I am holding Reliance Capital for last several years.

Reliance Home finance is born out of Reliance Capital.

That is why this q.

Guest

it means is it transfer form one to another of name

SHIRISH S S

Proprietor

1084 Points Posted on 09 October 2017

Samir - it is demerger from Reliance Capital to seperate Co called reliance home finance.

Both are traded now. Part of Reliance Capital is hived off into Reliance Home finance.

Poltu Ghosh

Job

1865 Points Posted on 09 October 2017

The period of holding of reliance home finance shares shall be counted from the date of acquisition of reliance capital shares. Since you are holding reliance capital shares for more than one year the period of holding of reliance home finance shares is also long term.

Poltu Ghosh

Job

1865 Points Posted on 09 October 2017

The cost of acquisition of shares of reliance home finance I.e the resulting company shall the proportion of net book value of assets transferred to net worth before Demerger of the reliance capital.