Calculation of Long Term Tax - when the purchase price cannot be proven

Jitendar Kumar 1
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Hello

I had purchase 300 shares of Albright Morarji and Pandit ltd in 1992-93. Additional 70 shares were allocated as rights in 1994-95. None of the receipts are available now, so I cannot prove the purchase price.

Compact bought back 370 shares (Rhodia Speciality - new name has now gone private). The shares were sold @1200/share.

How to compute Long Term Tax now.

long-term-capital-gains share-transfer capital-gains income-tax
1 Answers

If you don't have purchase receipts, you can use fair market price at that time.

If you have paid STT on purchase/sale, then there won't be any tax payable as gains from equities would be tax free.

Else, gains would be taxed at 20% with indexation benefit.

Pankaj Batra5212
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