Amcount.com - Capital gain on transfer of Rights Shares

Capital Gains on transfer of Rights Shares

Capital gain on transfer of Rights Shares is calculated in the following situations, after deducting Cost of acquisition (indexed if held for more than 12 months) & Incidental transfer expenses from the Full value of Sale consideration, wherein cost of acquisition is determined as:

Various Situations	Relevant Provisions
Original Shares i.e., on the basis of which the taxpayer becomes entitled to right shares.	Amount actually paid for acquiring shares.
Rights entitlement i.e., those are renounced by the assessee in favor of a person.	NIL
Rights shares acquired by the person by the assessee by exercising his rights entitlement.	Amount actually paid by the taxpayer for acquiring the asset.
Rights shares purchased by the person in whose favor Rights entitlement has been renounced.	Purchase cost incurred towards renouncing of Rights entitlement plus amount paid to the company which has allotted the Rights shares.