I got few shares as part of ESPP with some discount. During allotment, company deducted perquisite tax for Fair Market Value. However post getting shares, share price deteriorated very much. So I sold the shares below Fair Market Value. So more taxes have been deducted from my account. I wanted to know if we can show this loss in ITR to claim refund amount now or show loss and it can be adjusted in next years profit?
If you hold the stock for less than a year before you sell it, any gains will be considered compensation and taxed as such. If you hold the shares for more than one year, any profit will be taxed at the usually lower capital gains rate. That’s how it is with ESPP.