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.
While calculate sum of cost of acquisition is Rs 2,25,000 as per AIS, but in the purchase of securities shown in the table is 1,92,000. Why this much difference?
But as per broker account, purchase value is matching with around 2,25,000.
Pls clarify the query. Thanks
Cost of acquisition refers to the purchase price of sold shares. Wheras the other one is shares purchased during the current year. To be clear, you might have sold as well as bought shares during an year. The acquisition cost is meant for the shares sold. Hope, it clears the doubt.
There are diffrences between values of cost of acquisition and Fair market value. While calculating LTCG, which value (between cost of acquisition & FMV) should I substract from sales consideration to reach at the value of LTCG? All the shares were bought after 31st January, 2018.
Hello @Chirantan_Das
Since all the shares were purchased after 31st January 2018, the concept of Fair Market Value (FMV) as on 31.01.2018 is not applicable in your case.
For calculating Long-Term Capital Gain (LTCG), you should simply subtract the actual cost of acquisition from the sale consideration.
Thank you!!
Thanks for the clarification
Hello,
All the stocks below were bought before 31-Jan-2018. The values in red are the cost of acquisiton of these stock. @Quicko - Can you please explain how to calculate LTCG.
Thanks !
