Where the actual acquisition cost of these shares is not available, you may consider the FMV as on January 31, 2018 as the cost of acquisition.
By Chirag Nangia
My aunt had purchased shares a long time ago and has no idea at what rate she bought them. I sold the shares for her last year and the sale price was lower than the price on January 31, 2018. Can she book a loss against that?
— Parag
Long-term capital gains on sale of listed equity shares (held for a period more than 12 months) were exempt up to March 31, 2018. With effect from April 1, 2018, such gains in excess of Rs 1 lakh attract 10% tax, provided STT has been paid. Further, benefit of grandfather-ing provisions applies to equity shares acquired up to January 31, 2018. Accordingly, in case of equity shares purchased on or before January 31, 2018, the cost of acquisition shall be higher of—(i) the cost of acquisition of such asset; and (ii) lower of—(A) fair market value of such asset (FMV); and (B) sale consideration of such asset.
In respect of the shares listed on a recognized stock exchange, you may request the stockbroker to provide the cost of acquisition of the shares and the value as on January 31, 2018 to deter-mine the cost of acquisition. Further, where the actual acquisition cost of these shares is not available, you may consider the FMV as on January 31, 2018 as the cost of acquisition.
Also read: Income tax and other benefits that senior citizens can avail on their investments
Why is the dividend amount received from equity/ equity oriented mutual funds shown in Form 26 AS different from Annual Information Statement (AIS) on income tax portal. Which information is correct?
— Pallavi Chhabra
Generally, non-filing of TDS return or non-payment of TDS by the deductor, quoting wrong assessment year or wrong PAN, providing incorrect challan details in the TDS returns submitted by the deductee, are some of the reasons that could result in inconsistency. If there is an inconsistency between the TDS information in Form 26AS and that appearing in AIS, the income tax department has expressly advised taxpayers to rely on the information on TRACES for filing of ITR. Accordingly, use Form 26AS to report income in the return. However, if income as reported in Form 26AS does not match the amount actually received, it is conservative to report higher of the two amounts to avoid any query by the tax department.
The writer is director, Nangia Andersen India. Send your queries to .