HDFC AND HDFC BANK MERGER AND TAXATION, CAPITAL GAIN, COST OF ACQUISITION

Taxation
1

Sir, what would be the Capital gains implications (and calculations of holding period) of shares received in form of HDFC bank in lieu of HDFC (ratio 42:25). And what would be the cost of acquisition of shares of HDFC bank thus received. Request you to please inform. Regards.

2

for tax purpose your purchase date and for calculation of cost of acquisition your purchase price of HDFC only matter… it is a MERGER hence no cost of acquisition to be provided by co wherein case of D-MERGER the company do provide cost of acquisition …

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3

Till now I haven’t got my fractional shares money of HDFC into my bank account. is it going to take longer to credit?

4

normally it takes about 60-90 days from record date …

5

Hello @sandeepsood100

The period of holding for the HDFC Bank shares will be considered from the date you purchased HDFC Ltd Shares. If they are held of less than 12 months the gains will be considered Short Term and if held for more than 12 months then Long Term.

The cost of acquisition for HDFC Bank shares will be the amount you paid to originally acquire the HDFC Ltd shares.

Hope this helps!