Jio Financial Services demerger: How you will be taxed

Reliance Industries has jolted the market once again. On July 20, 2023, it demerged its financial lending arm, Jio Financial Services (JFS). The swap ratio for the demerger was 1:1, i.e., for every share held in Reliance Industries, you will receive one share of JFS. While the demerged entity is yet to be listed, one question is already bugging existing shareholders: how will they get taxed? So, here's our attempt to demystify the tax questions of this mega demerger. What will be the cost of acquisition? Your capital gains are based on your cost of acquisition, i.e., the price at which you purchased the shares of a