My parents bought some shares in the 90s (not sure of the exact year). They passed away in 2004 and 2010. The shares were transmitted to me in 2013 (not sure of the exact date).
If I sell those shares now, what would be the cost basis for calculating capital gains? Would it be the price in 2013?
November 15, 2022, 12:53pm
If a person receives shares as a gift from his parents, then the capital gains shall be taxed in the hands of the person when he sells the shares. Here’s a read on
Tax on Gifted Shares & Securities - Learn by Quicko for your better understanding of tax computation.
So the cost basis would be the share price in the 90s when the shares were originally purchased?
November 16, 2022, 6:21am
Yes, the cost of acquisition shall be the share’s original purchase price.
I’d like to add the purchase price would be grandfathered to the highest price traded on 31st January 2018.
November 16, 2022, 10:34am
Yes, it is rightly said by
@Suyash.K , the grandfathering rule shall apply. Here’s a read on Long Term Capital Gain Tax on Shares Section 112A - Learn by Quicko for your better understanding on Grandfathering rule to calculate Long Term Capital Gain on Shares.
Hope this helps.
Thanks for reminding me of the rule!