CHEENI (SELF EMPLOYED) 19 May 2010
I have been holding some shares of Bank of Rajasthan for few years now. Therefore they are eligible for long term capital gains. Now that this Bank is to be merged with ICICI Bank and i will be issued ICICI Bank shares as per the swap ratio, shall I continue to enjoy Long term capital gains benefit if I sell the ICICI shares immediately it is credited to my DP account?
Vineet (Director) 19 May 2010
Yes Cheeni, you will continue to be benefited by Long Term Capital Gain provisions.
1. The swap of shares of Bank of Rajasthan and ICICI bank will not be tretaed as Transfer under Income Tax Act hence no tax liability arises now.
2. The cost of new ICICI shares shall be equal to the cost at which original Bk of Raj shares were acquired.
3. The date of acquisition of new ICICI shares shall be deemed to be the date of purchase of original Bk of Raj Shares.
Hence just relax and congratulations for this windfall.
Member Strength 9,46,711 and growing..
© 2024 LAWyersclubindia.com. Let us grow stronger by mutual exchange of knowledge.
