Tata Motors’ disorder has become effective from October 1. Tata Motors’ shareholders will get a new commercial vehicle company share on each stock. The business of Tata Motors is dividing into two weapons-pacificer vehicles and commercial vehicles. The record date for the division of shares is 14 October. The new company is named TML commercial vehicles, which will be listed on stock exchanges in early November. Tata Motors shares fell 0.38 per cent to Rs 715.65 on 3 October.
Deemer impact on shareholders
When a company is Deeram, it issues stockholders stocks of the new company. These shares are not available for free. The original cost of acosisation splits. This means that the share price is divided on the basis of their net book value (NBV). Kunal Sharma, founder and managing partner of Tarakash Layers and Consultants, said, “Listed companies generally disclose the apartition ratio in their corporate announcements. Investors should use this ratio on their original discourse prices.”
Method of determining the prices of shares
Shreya Jaiswal, founder and chartered accountant of brand strategy firm Fawkes Solutions and Chartered Accountant, said, “Most companies publish this ratio. For example it can happen in 60:40. Companies describe it in their scheme of arrangements or it is informed through the resistor and transfer agent. It means that you have purchased for Rs 1,000. The cost of the 600 rupees is the cost of the company and the cost of the new company gets 400 rupees. ” This method will be used after announcing the percentage ratio for Tata Motors’ NBV.
Tax rules on allotment of new shares
The shares of the new company are allotted on the disorganization, there is no effect in the matter of tax. A new share comes in the shareholder’s demat account and has to disclose the purchase price. Relief has been given through Section 47 (VIB) (VID) (VB) of the Income Tax Act. Under the disorder scheme, the transfer of shares is not considered taxable transfer for shareholders.
No capital gence on new company shares
Sharma said, “This means that the Capital Gens Tax is not applied to the allotment of the shares of the new company under the disorder. Tax is levied only when the investor sells shares.” Retail investors do not get any special exgamption than this. The law allows the law to be maintained in the disorganization. Under Section 2 (42A) of the IT Act, the holding period of parent company is considered as included in the holding period of shares of the new company.
Holding period of shares will not change after disorder
Sharma said that this means that if the shares of the parent company were more than 12 months before the dearrs with Investor, then the rules of the long -term capital gains will apply to the shares of the parent company and the new company. This means that the holding period of the shares does not change after the dear. For retail investors, this means that the age of his shares remains the same after the dearrs.