Tata Motors Demerger: Decoding PV-CV Cost Split, Income Tax Law Implications

NDTV Profit breaks down how this will affect the cost basis and the overall taxation scenarios for the stocks. (Image Source: NDTV Profit) Show Quick Read Summary is AI Generated. Newsroom Reviewed

Tata Motors Ltd.'s commercial vehicles segment debuted on the exchanges on Nov. 12, marking the conclusion of the demerger between the passenger vehicle and the commercial vehicle segment, with the passenger vehicles stock named Tata Motors Passenger Vehicles Ltd.

NDTV Profit breaks down how this will affect the cost basis and the overall taxation scenarios for the stocks to help investors have a better understanding on how these developments will impact their portfolio.

According to Abheet Sachdeva, partner at Nangia Group, the income tax law provides for split of original cost of acqu