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)
3 Answers
Hi,
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)
SIR do you mean to say that i need not pay ltcg as the cost of acquisition and sale price are equal @500/-
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