Comment on Taxation for Investors

Nithin Kamath commented on 28 Nov 2015, 03:44 AM

Ah.. had missed this query.
Firstly, the holding period (based on date of purchase) for both the stocks will remain the same based on the purchase of the original IDFC ltd. So if it was long term before, it will continue to be long term for both IDFC and IDFC bank.
To determine cost of Acquisition IDFC had shared this with all the share holders.

If you have purchased equity shares of IDFC Limited prior to the Record Date, to determine post demerger cost of acquisition for equity share(s) of IDFC Limited and IDFC Bank Limited, you are advised to apportion your pre demerger cost of equity share(s) of IDFC Limited in the following manner:

Name of the Company % of Cost of Acquisition of IDFC Limited equity shares
IDFC Limited 60.58
IDFC Bank Limited 39.42

So if you originally had IDFC purchased at Rs 100. You can mention the cost of the new IDFC as Rs 60.58 and for IDFC Bank as Rs 39.42. So your long term profit and loss will be based on this.

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