Tax Question: Calculating capital gains tax on the sale of post-merger stock bl-premium-article-image

You originally paid ₹72,800 (700 shares * ₹104 per share) for the shares of Allahabad Bank that you purchased in 2013. After Allahabad Bank and Indian Bank merged in 2020, you were given 80 shares of Indian Bank instead of the initial 700 shares of Allahabad Bank.In 2013, I bought 700 shares of Allahabad Bank at an average price of ₹104. I received 80 shares of Indian Bank following the bank's 2020 merger. What is the price of the shares I must purchase in order to calculate my capital gain or loss if I decide to sell these shares right away?You originally paid ₹72,800 (700 shares * ₹104 per share) for the shares of Allahabad Bank that you purchased in 2013.

After Allahabad Bank and Indian Bank merged in 2020, you were given 80 shares of Indian Bank instead of the initial 700 shares of Allahabad Bank.The nature of capital gain shall be Long term capital gain as the period of holding shall be calculated from the original share purchase, and not from the date of merger