I acquired EMAIL from TATA Motors that 10% TDS deducted for Rs 200.63 * No. of AOS
Do we have to pay deemed dividend tax as per the tax slab for the dividend money we now have not acquired (Rs 200.63 * No. of AOS) because of cancellation of tata motors DVR shares?
Within the e-mail, Value of Acquisition is marked as Rs 1111.35 per share for TATA MOTORS AOS
However KITE console reveals price of acquisition of newly acquired TATA Motors as per price on the time of shopping for TATA motors DVR.
Do we have to pay capital achieve tax if we favor to carry the newly issued tata motors shared ?
You possibly can take a look at this text for higher understanding.
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Why did I obtain fewer Tata Motors shares than anticipated after the merger?
Why did I obtain fewer Tata Motors shares than anticipated after the merger?
Sasi:
Do we have to pay deemed dividend tax as per the tax slab for the dividend money we now have not acquired (Rs 200.63 * No. of AOS) because of cancellation of tata motors DVR shares?
Sure.
(Deemed dividend per share * No.of DVR shares beforehand held)
Sasi:
Do we have to pay capital achieve tax if we favor to carry the newly issued tata motors shared
Sure,
Capital positive aspects might be = { (1111.35 * no of atypical shares issued) – Value of acquisition of previous DVR shares – Deemed divided }
PS:You may also take a look at this instance
Your positive aspects from this conversion may be damaged into two elements:
Partly as Deemed divided (tax at slab charges)
Partly as Capital Good points (particular charges)I’ll take the closing worth (~ ₹1,122) of Tata Motors as on twenty ninth Aug for explaining the beneath calculations.
Assuming i purchased 100 DVR shares at ₹300, my price of acquisition is ₹30,000.
Now, the worth as on twenty ninth Aug might be used to find out the sale consideration.
For the reason that ratio is 7:10, I’ll get 70 atypical shares for the 100 DVR shares.
Assuming ₹1,122 is used for the ultimate calculation, the Sale consideration might be = (₹1,122 x 70) = ₹78,540
Usually, we’ll take the (Sale worth – Buy worth ) to calculate the capital positive aspects.
This is able to be (₹78,540 – ₹30,000) = ₹48,540
However right here, for the reason that deemed divided idea is concerned, the full positive aspects might be damaged into two.
The precise deemed divided might be recognized solely later, for now i’ll take into account the ₹200 per share because the deemed divided portion.
So the deemed dividend for 100 DVR shares might be (100 x ₹200) = ₹20,000
In our revenue tax return, we’ll present ₹20,000 as Deemed dividend beneath IFOS, and the remaining ₹28,540 as capital positive aspects.
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then why ZERODHA KITE is just not displaying price of TATA motors shares as Rs 1111.35 ? @ShubhS9 @Tradingqna