IDFC shares is it short term loss after demerger

– I am having IDFC shares purchased this year and as you know, there is a demerger of IDFC and IDFC Bank. For each share of IDFC, existing shareholders of IDFC will get 1 share each of IDFC Bank when it gets listed.
When this demerger was effective, the shares of IDFC were down to approx Rs 70 and now they are at Rs 61.2.
If I sell by short term holdings, I will book a shot term loss.
Can I claim this loss as Short term Capital loss considering that I would be getting IDFC Bank share somewhere in November when it gets listed?
Will this short term loss be treated as any other short term loss while filing IT return (like I can carry forward this loss to adjust it again short term gains for next 8 years?

No, you will need to reduce the cost of IDFC shares that you had originally purchased.

Reduce it by how much?

In this case it is quite simple, reduce it by half. Use the rest half as cost price for IDFC bank. If you are making losses over and above the reduced cost, then yes you can show that as short term loss.

So assuming you had bought IDFC at 130, after the demerger you can use the cost of IDFC as 65 and IDFC Bank as 65.

So only if the stock price is below 65 and you sell it, you can claim for short term capital loss.

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As per a mail received from IDFC,

Cost of Acquisition in accordance with Sections 49(2C) and 49(2D) of the Income Tax Act, 1961

If you have purchased equity shares of IDFC Limited prior to the Record Date, to determine post demerger cost of acquisition for equity share(s) of IDFC Limited and IDFC Bank Limited, you are advised to apportion your pre demerger cost of equity share(s) of IDFC Limited in the following manner:

Name of the Company % of Cost of Acquisition of IDFC Limited equity shares
IDFC Limited 60.58
IDFC Bank Limited 39.42
Total 100
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Cost of acquisition is 61% of original cost to IDFC limited and 39% to IDFC Bank. Thanks Sandy for letting know.

Sir, Please share the mail received from IDFC for that cost of acquisition to below mentioned mail ID for our audit purpose
[email protected]