If shares are delisted, like Laxmi Vilas Bank purchased @20 100 shares and Rs 2000/- can be booked as loss in
income tax return as the value is zero and lying in demat a/c.
If loss can be shown, under which section IT ?
I had shares of LaxmiVillas Bank worth 7 lac which were reduced to ZERO. Can I adjust this against the profit I am making in other stocks for tax computation. Please advice.
Hey @Pragna_Vasa
You can book a loss in ITR. This loss can either be a long term or short term loss depending upon the holding period of the unlisted shares.
You can read in detail about Income Tax on Unlisted Shares in India here
Hope this helps!
Hey @annu_anand
You can adjust this loss against the profit considering the set of rules. It is to be noted that the taxpayer cannot carry forward losses to future years if the income tax return for the year in which loss is incurred is not filed on the Income Tax Website within the due date.
Hope this helps!
Well I am not completely sure, but I don’t think you can book the loss only because a company got delisted. Since @Pragna_Vasa is still holding that shares in Demat, it is a notional loss and not actual loss. Actual profit/loss can be booked only when those shares are actually sold.
@Quicko don’t you think loss can be booked only when those shares are sold?
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