Tax Treatment on Share Split - Sale

Share
Share This Thread
  1. Amarendar A

    Amarendar A New Member

    I brought 5 shares in 1-5-2013, and it is split 1:10 ratio, if I sell all these 50 shares, will it be considered Long Term or Shot Term Capital Gain?

    When I bought these shares its cost is 2300, now it is 300, How this should be calulated please let me know this.

    Thanks,
    Amar
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    The tax treatment in case of share split is as follows:-
    1. The cost of each share would be considered proportionate to the original cost. If the original cost was Rs. 2300, and share split is 1:10, the cost of acquisition of each share would also be split into 10 and cost of each share would now be Rs. 230
    2. The period of holding would also be considered from the original date of acquisition i.e. 1-5-2013. As, it has been more than 1 year - therefore it would be considered as Long Term.
    Please note that the treatment of Share Split is different from the tax treatment of bonus shares.
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
TREATMENT OF SHORT TERM CAPITAL LOSS IN RESPECT OF EQUITY SHARES Income Tax Jan 16, 2017
Treatment of Profit on transfer of Shares in an LLP Income Tax Jul 6, 2016
Treatment of Expenses like STT, & other expenses levied on Share Market transactions? Income Tax Oct 8, 2015
Tax treatment on returns from Portfolio Management Services Income Tax Feb 18, 2018
Tax treatment on surrender of ULPP Income Tax Dec 11, 2017