tax treatment of investments written off

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2010 In a Private Ltd. Company, there is an investment which is to be written off on dissolution of the company in which nvestment is made. What are the tax implications? Can we adjust this loss on write off against business profits?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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08 April 2010 The loss on sale will be short term capital loss if held for a period of less than 1 year and the loss will be set off against STCG or LTCGains

The loss on sale will be long term capital loss if held for a period of more than 1 year and the loss will be set off against LTC Gains only and not against business profits since the shares were held as investments