Variant for sale of equity shares/equity mutual funds bought prior to 1.2. 2018

Income from Capital Gains / By

Formula

Sale Price

Less Cost being

Higher of:

  1. Cost I paid for it
  2. Fair Market Value (FMV) as on 31.1.18  (but  where I use the FMV option, I can’t take the Cost to be higher than sale price. Therefore, where FMV exceeds Cost I paid for it, I restrict such FMV to my sale price amount. I can’t have a loss on account of taking FMV option.

There’s no indexation benefit to be taken in this variant.

If I bought shares after 31.1.18 and am having a long term capital gain on such shares, then FMV formula doesn’t apply, and its just

Sale

Less Cost I paid for it