So does this swap mean all investors who have participated in swap will be impacted with LTCG / STCG too?
The only reason I didn’t sell DVR in the market before record-date was that i thought I will save myself from LTCG impact if I continue to hold Tata Motors this year
I truly think Tata Motors have botched this swap big time
Retail investors were originally issued DVR at 10% discount (IPO) but swap was executed at 30% discount - this bottom fishing is just not disappointing… it’s shameful
In theory all 3 taxes - Dividend tax, STCG, LTCG are applicable for those who had DVR shares and opted for it to be converted.
However, the calculations involved are little complex, depending on your purchase date, qty, Deemed Dividend concept, TDS deduction by Tata Motors on the Deemed Dividend amount, potential offset of some LTCG against the same, deduction of STCG etc. I would suggest you download the sample tax calculator that they had issued before the conversion. Plug-in your numbers and change the value of Deemed Dividend as per the latest value they published after conversion…you will get all the answers.
