Previously, the capital gain tax was 7.5 percent. Issuing a directive to broker companies, Central Depository System and Clearing (CDSC) clearly mentioned that from the beginning of the new FY, the capital gain tax will be calculated as per the weighted average method. CDSC directed stockbrokers to comply with the method within their system.
However, CDSC has not given a particular date to fix base price while calculating right and bonus share. According to Suresh Neupane, the cost price any investors spent to obtain the right and bonus share will be taken as a base for the weighted average cost.
In the case of stocks purchased before the implementation of dematerialize trading (January 15, 2016), the investors can themselves fix the capital gain tax by announcing the cost of the share they owned given that the CDSC do not have data before the date.
