The Supreme Court has permitted Maharashtra to hold local body elections. However, the results for all bodies, including those breaching the 50 percent reservation cap for OBCs, will await the court's final decision. A three-judge bench will hear the OBC reservation pleas on January 21, 2026
Tata Motors Demerger Complete: Selling Shares now? Tax Expert Warns Of CV-Gain, PV-Loss Twist
Tata Motors Demerger Complete: Selling Shares now? Tax Expert Warns Of CV-Gain, PV-Loss Twist
Tata Motors Demerger: Tata Motors Limited, the commercial arm of the automobile, has begun trading on November 12. Shares of Tata Motors Commercial Vehicles Ltd (TMCVL) made their stock market debut at Rs 335 apiece on NSE, a premium of 28.48% to its implied value of Rs 260.75 per share. Shares dropped to end at Rs 317.60 apiece.
The listing follows the Tata Motors demerger, which officially came into effect on October 1, 2025. Under the plan, shareholders received one share of Tata Motors Commercial Vehicles Ltd for every share held in Tata Motors as of the record date, October 14, 2025.
Post-restructuring, the Commercial Vehicles (CV) business has been renamed Tata Motors, while the Passenger Vehicles (PV), Electric Vehicles (EVs), and Jaguar Land Rover (JLR) businesses now operate under Tata Motors Passenger Vehicles Ltd (TMPV), which is already listed as a separate entity.
The good news is that receiving these new shares is not taxable. Since the split took place under a court-approved demerger, Section 47 of the Income Tax Act treats this as “tax neutral", meaning there is no transfer and no tax is triggered at the time of allotment.
But, investors must know that these shares will be taxable if you sell them.
Sujit Bangar, the founder of taxbuddy.com, has explained the demerger taxation in his X post.
Tata Motors has officially declared the cost allocation ratio for the two new entities:
This split must be followed exactly while calculating capital gains.
For example, an investor who originally bought 1,000 Tata Motors shares at Rs 660 each had a total cost of Rs 6,60,000. After applying the official ratio, the revised cost becomes:
If these shares are sold at the current market prices—Rs 318 for Tata Motors and Rs 391 for Tata Motors Passenger Vehicle—the investor ends up with:
Swipe Left For Next Video
Tata Motors has 66,55,766 shareholdersThey've completed a demerger and recently declared the cost of both companies
Before you rush to sell, you may have gains in the CV entity but a loss in the PV entity.
Here's all that you need to know about your demerger taxation 👇🧵 pic.twitter.com/7fkCN8SQUs
— Sujit Bangar (@sujit_bangar) November 14, 2025
The original holding period of Tata Motors carries forward for both companies. This decides whether the gain is short-term or long-term.
Source: News18
Related Posts: Tata Motors Demerger Tata Motors shareholders panic as shares plunge 40% after demerger Tata Motors Demerger To Take Effect On October 1 Tata Motors Enters Dominican Republic With Versatile Commercial Vehicle Range Tata Motors Limited Reports Rs 867 Crore Loss For Q2 FY26 Tata Motors sales jump 32 pc in February on strong truck demand HUL–Kwality Wall’s Demerger NCLT reserves order on Vedanta demerger matter Vedanta extends deadline for demerger to March next year Commercial LPG Cylinder Prices Hiked By Rs 15
The Supreme Court has permitted Maharashtra to hold local body elections. However, the results for all bodies, including those breaching the 50 percent reservation cap for OBCs, will await the court's final decision. A three-judge bench will hear the OBC reservation pleas on January 21, 2026
3 months ago
