March 28, 2021

Unlisted Shares - Long Term Capital Gains Tax Calculation -Message Received

 Blog ; Please Recheck this Independently , also

 

 MESSAGE

 

In the budget 2018 the then Finance Minister while bringing long term capital gain to tax net, excluded long term capital gain till 31/01/2018 tax free. For this purpose, he introduced Fair Market Value (FMV) as at 31/01/2018 is to be taken as cost in case of unlisted shares . 

Otherwise, inflation indexing of the cost of buying is to be considered  as cost and that will result in huge tax at 20%  on LTCG. Indexing share value is absurd in the first place as value of equity shares, listed or unlisted,  does not depend on cost of inflation but on other factors like performance etc. 


Therefore the FMV becomes very important for   those who are selling Digvijay Finlease Ltd / any other Unlisted share .

Blog Gratitude to ; Krishnan Ramaseshan

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