19 August 2024
I bought 5000 shares of Sharon Bio-Medicine in 2016 with CoA of Rs 60250. On 31-Oct-20 all 5000 shares were made 0 by way of 'To Capital Reduction' and 500 new shares under new ISIN was allotted by way of 'By Capital Reduction'. This was done under the order of NCLT Mumbai branch on 2Apr2019 under the insolvency and Bankruptcy Code 2013. These 500 shares were awaiting trading approval which never came. Again on 22-Jun-24, the 500 shares were taken away further by way of Capital Reduction. It seems the Cos. went for Corporate Insolvency Resolution process as approved by NCLT Mumbai bench on May-2023. The result - all shares were lost due to capital reduction. Can I claim Long Term Capital Loss for the acquisition cost of Rs 60250 with zero sale value?
19 August 2024
Though shares were existing in Demat account. but you needed to declare them in your ITR under unlisted shares. You may claim the loss in your next ITR but chances of its objection from ITD does exist.
CAclubindia
