'How Can I Calculate Long Term Gains On Shares Sold?'

Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU T S Khurana, a fellow member of The Institute of Cost Accountants of India, will answer them.

Pravin: I have 500 RIL share bought before 31-01-2018. Now, with 500 bonus shares, I have 1,000 RIL shares. If I sell 300 shares, how LTCG will be calculated?

• Cost of 300 RIL shares being sold now shall be your cost at which you purchased the first lot of 500 shares. This info should be available with you.
  
  
• Cost of bonus shares shall be treated as nil/zero to work out capital gains when you sell those shares. You may adopt the principle of FIFO (first in first out) to trace the cost of the shares.
  
  

Prominent: I have an income tax demand of Rs 60,150 for AY21-22.
Along with certain interest they adjusted the demand amount with my current year refund amount Rs 49,000 ie assessment year 24-25.
Moreover I have paid an interest amount Rs 18,000 with an additional challan regarding the demand of 21-22.
Currently I had filed a rectification request for 21-22 and it got processed with no demand due and it is showing Rs 49,000 which was previously adjusted will be refunded, but what about the Rs 18,000 which I paid additionally? How to get back that amount?

Based on the limited information provided in the question, my comments are as under:

• It seems ITD has rectified your assessment order with NO DEMAND (after adjustment of Rs 18,000 paid by you) for the A/Y 21-22.
  
  
• Rs 49,000, which was adjusted from your refund due for the A/Y 24-25, shall be returned now.

Hope you understand the sequence.

Javed: Sir, I have short term capital gain of Rs 6,50,000 in India in FY 2024-25 and no other income. Will I have to pay income tax?

Yes. You will have to pay income tax on short term capital gains.

In this case, first Rs 2.50 lakh shall be covered under basic tax limit (under the old regime) and, on the balance of Rs 4 lakh, you will have to pay tax @ 20 per cent.

In case of the new tax regime, the basic exemption limit will be Rs 3 lakh and, on the balance Rs 3.50 lakh, you will have to pay tax @ 20 per cent.

Cess shall be extra in both cases.

Ramanand: (1) I want to pay the university fees of my granddaughter in a US university (Duke University, North Carolina).
How can I do it through say SBI?
I understand grandparents are not entitled. In such a case how can I transfer the fees and what are the tax implications?
2) How much of INR I can give as a gift to my US-based daughter through SBI without any tax liability and with tax liability?

It is advisable for you to gift the amount to your granddaughter's parents (either will be okay).

There would not be any income tax complications for you. Please adopt banking channels for this transaction.

They, in turn, should pay the fees of their daughter studying in USA.

• You can ask rediffGURU T S Khurana your questions HERE.

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Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.