i have purchased 100 shares @400 in 2016 and the rate as on 31-01-2018 was 600/-.ihave sold these shares @500 in 2020.whether i have to pay ltcg of Rs.100(Rs.500-Rs.400) or ltcl of Rs.100(Rs.600- RS.500)
You have purchased shares before 31-01-2018 and sold after 01-04-2018, So, LTCG tax is applicable on Shares u/s 112A.
For the calculation of long term capital gain, in this case, the pivotal factor is the Cost of Acquisition. It can be determined by considering higher of the following –
- The actual cost of acquisition (Rs 400)
- And the lower of the following –
- Fair Market Value (FMV) on 31.1.18 (Rs 600)
- The sale price or full value consideration of the security (Rs 500)
So in your case, cost of acquisition is Rs 500 and sale price is also Rs 500.
You may also consult a CA in this regard.
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SIR do you mean to say that i need not pay ltcg as the cost of acquisition and sale price are equal @500/-