MANAGEMENT

Detailed explanation-1: -The difference between the purchase price and the sale price represents the gain or loss per share. Multiplying this value by the number of shares yields the total dollar amount of the transaction.

Detailed explanation-2: -To calculate your profit or loss, subtract the current price from the original price. The percentage change takes the result from above, divides it by the original purchase price, and multiplies that by 100.

Detailed explanation-3: -Long-term capital gain = Final Sale Price – (indexed cost of acquisition + indexed cost of improvement + cost of transfer), where: Indexed cost of acquisition = cost of acquisition x cost inflation index of the year of transfer/cost inflation index of the year of acquisition.

Detailed explanation-4: -Such gain is charged to tax at 15% (plus surcharge and cess as applicable). In the given case shares were sold after holding them for less than 12 months, shares were sold through a recognised stock exchange and the transaction was liable to STT, hence, the STCG can be termed as STCG covered under section 111A.