Loss from shares in a pvt. ltd. co.

Hi frenz...

 

Had a doubt... Mr. X has invested around 6 lakhs in a pvt. ltd. co. Now that company will be getting closed down soon. Due to losses, the company will not be able to repay back the investment of 6 lakhs.

 

So, can X claim that loss under PGBP ?

 

Thanks in advance

Replies (5)

Dear Vidisha,

Wat was the mode of investment in Pvt. Ltd?

1) If through shares/debentures -

            -        Held as capital asset - Capital Loss

           -         Held as Inventory - It will be removed from the valuation of closing stock and automaticaly the profit gets adjusted.

2) As a loan other than debenture -

          -          If advance was givrn in a normal course of business of Mr. X - deduction will be allowed u/s 36

         -          in personal capacity - No treatment i:e dead loss.

Agree wid d answer of Amir Sir

vidisha,

i presume you were asking in the angle that the investment which is lost can be claimed or not?

It cannot be claimed as a business loss as you didn't mention he is doing the same as business. 

You itself say that it is an investment, hence can be claimed only in Capital Gains Head subject to proper evidence as to the loss.

Originally posted by : SIVASIVA

vidisha,

i presume you were asking in the angle that the investment which is lost can be claimed or not?

It cannot be claimed as a business loss as you didn't mention he is doing the same as business. 

You itself say that it is an investment, hence can be claimed only in Capital Gains Head subject to proper evidence as to the loss.

 agree with sivasiva

 

I TOTALLY AGREE WITH SIVASIVA ,BUT SIVASIVA I WANTED TO KNOW THAT IF THE COMPANY IS GOING TO BE LIQUIDATED AND THE ASSESSE IS NOT GOING TO RECIEVE ANYTHING WHETHER THIS WOULD BE CONSIDERED AS A TRANSFER OF CAPITAL ASSET AS DEFINED WITHIN THE SCOPE OF CAPITAL GAIN BECAUSE IF IT IS NOT CONSIDERED AS A CAPITAL ASSET THEN THERE CANNOT BE ANY CAPITAL GAIN/LOSS 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details