Query on Reporting Capital Gains from Fractional Share in ITR-2

Income Tax Income from Capital Gains
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I had purchased five shares of a company—three shares on 07/08/2024 at ₹1515.35 each, and two shares on 30/08/2024 at ₹1508.35 each. Following a stock split in the ratio of
2:5, I became entitled to 12.5 shares. Since fractional shares (0.5) are not issued in dematerialized form, I received ₹310.6 in my bank account on 30/11/24 as settlement for the 0.5 fractional share. In this context, I would appreciate your clarification on the following points.

First, where should this transaction be reported in ITR-2? Should it be shown under Schedule CG as other normal short-term gains?

Second, can I report ₹310.6 as the “full value of consideration” received for the fractional share?

Third, how should I calculate the cost of acquisition for this fractional share? Should it be determined by proportionately allocating the total cost of the original five shares (₹7,562.75) across the post-split 12.5 shares—resulting in a cost of ₹302.51 for the 0.5 share—or, alternatively, by applying the FIFO method and attributing the fractional share to the most recent purchase (two shares at ₹1508.35), thereby calculating the cost as ₹301.67?

Fourth, what should be considered as the date of acquisition ?

Lastly, could reporting this transaction in ITR-2, despite its absence in AIS/TIS, result in a notice or mismatch inquiry? Should I provide feedback in the AIS portal about this gain? If yes, then where exactly in the AIS portal should this feedback be submitted?

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Hey @T_Bose

Let me address your queries one by one:

  1. This should be reported as a short-term capital gain under Schedule CG.

  2. Yes, you can report ₹310.60 as the full value of consideration for the fractional 0.5 share.

  3. The cost of acquisition should be determined by proportionately allocating the total original cost across the post-split shares.

  4. The date of acquisition for the split shares will remain the same as that of the original shares.

  5. You may report this transaction in your ITR even if it does not appear in AIS/TIS.

Hope this helps!

1 Like
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Thank you so much for the detailed response — it really helped clarify a lot of my confusion.
I have one more question if you don’t mind: I understand that the date of acquisition for split shares remains the same as that of the original shares. However, in my case, I purchased the original shares in two different lots — 3 shares on 07/08/2024 and 2 shares on 30/08/2024. In this scenario, which date should I consider as the acquisition date for the 0.5 fractional share?