INCOME TAX24 Sept 2026
Inherited 1980s shares? How grandfathering rules save you from 2026 LTCG tax bill | Mint
Grandfathering rules can still help if you inherited listed shares bought before 1 February 2018, even if the inheritance happened later. When you sell in 2026, your cost can be the higher of the original cost or the fair market value on 31 January 2018. This lowers your long-term capital gains tax. Indexation is not allowed, so keep purchase and demat records ready.
Key Statutory Highlights
- If the original owner bought the listed shares before 1 February 2018, the grandfathering benefit is not lost just because you inherited them after that date.
- For eligible listed equity shares, the cost is the higher of the actual cost and the fair market value as on 31 January 2018, worked out from the highest quoted price on a recognised stock exchange that day.
- Indexation is not available for these inherited listed shares.
Actionable Advice for Taxpayers / Founders:Before you sell or file, collect the original owner's purchase proofs and the 31 January 2018 price details for those shares. Because the conditions are detailed, ask a tax professional to confirm your cost of acquisition for your case.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: