If FMV in AIS is shown as 0,
does it mean no change in Cost of Aquisition? And Take Cost of Aquisition as it is?
Or
it means we have to take Cost of Aquisition as 0?
For example in LICI at no 22,23,24, it would be 159389 = Cost of Aquisition, and if FMV taken as 0, then Long Term Capital Gains = 159389/- ?
FMV is different from cost of acquisition. It is the value of that share as on 31/1/2018, from which date the capital gains are taxed and hence the buyer can take advantage of the either the cost of acquisition or the FMV whichever is advantage. Cost of acquisition is the purchase price which will always remain the same while calculating loss or gain.
Hello @abhikolte2014 @Meher_Smaran ,
Your query is related to calculation of capital gains. We suggest that you should calculate your capital gains based on the data available with your broker rather than the data mentioned in AIS as that is more accurate.
Also, FMV is relevant for securities that were bought before 31st January, 2018 and sold before 23rd July, 2024. Thus it is not relevant for short term gains.
Hope this resolves your query!
Why this qualification on sold before 23rd July 2024?
Are you saying that If I have shares bought before 31st Jan’18 and sold after 23rd Jul’24, I cannot use FMV and grandfather the gains?
I maybe wrong, but I don’t think that is the case.
Hello @Akash_Shah ,
Yes, you’re correct.
Even if the shares are sold after 23rd July 2024 but were brought before 31st Jan 2018, grandfathering rule will be applicable and FMV can be used to calculate the capital gains.
