Tax on Profit on Purchase of Shares

This query is : Resolved

narendra khandelwal (Querist)
Follow

01 August 2009 ABC PVT LTD Co issue shares to Mr.Sharma at par. the face value of shares is Rs.10/-each.
After 8 month Mr.Sharma sold(Transfer) these shares to Mr.Gupta at Rs.2/-each.

in this transaction mr. Sharma suffered a loss of Rs.8 per share.

what we will be tax implication in above transaction.

is there any changes/proposal in finance act 2009 regarding profit on purchase of shares in hands of Mr.Gupta.

pls reply at earliest.

thanks in advance

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

01 August 2009 Whether it is LTCG loss or STCG loss.
If it is LTCG then it will not allowed to be set off.
If it is STCG , then it will be allowed to set off.