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@ Futurist

Section 43 - For Divorce & Transfer
Section 44 - For Death and Transfer
Section 45 - For transfer without consideration

.....These will be applicable in case of shares also as it comes under definition of asset.....Baki Ishwor Ko Leela....

This is understandable Pujibhairav ji. But my query is how do they calculate weighted average if shares are obtained through transfers (Family/Death)? How does this variable fit in the equation?

I have better and very simple formula than theirs'. (Unless I dont know the full story).

But I wont disclose.

thanks for the example puji bhairav ji........................that method sounds ok

An example
Let's say that you own 500 shares of XYZ, and you acquired your shares in three separate transactions BEFORE YOU GOT ANY RIGHT OR BONUS. You bought the following number of shares at each of the following price points.

150 shares at 100 =15000
250 shares at 200 = 50000
100 shares at 300 = 30000
100 shares at 100 =10000 (RIGHT)
100 shares at 0 = 0 (BONUS)

Total Share = 700
Total Cost = 105000

In order to calculate your weighted average price per share, simply multiply each purchase price by the amount of shares purchased at that price, add them together, and then divide by the total number of shares. Written as an equation, it looks like this:

Weighted Average Price of Share = 105000/700 = 150

CAPITAL GAIN
1 - Paid if sales is made above 150

....Baki Ishwor Ko Leela...