wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Shares in Neha Ltd. was acquired by Mr.Paras at a cost of Rs. 50,000. During the current p.y. he got right to acquire fresh shares on the date of receiving the right entitlement intimation fair market value of existing shares held by Mr. Paras was Rs.60,000. Mr. Paras sold the right paper for Rs.75,000. His capital gains liability would be:

A
Rs. 10,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Rs. 75,000
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
Rs. 25,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
Rs. 15,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B Rs. 75,000
Right issue of shares is offered to the existing shareholders of the company. Right shares may be issued at certain price which shareholders to pay off.
In the given situation, shareholder has not exercised the right issue for himself and sold the right paper for Rs.75000/-
Nothing is paid against the right issue, hence cost of right will be zero.

Sale of right paper Rs.75000
Cost to acquire right issue Rs.0
Capital Gain on sale of right issue Rs.75000

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Solvency Ratios
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon