LTCG Loss - for liquidated / under Liquidation / Insolvent stocks

Can we book LTCG Loss - for liquidated / under Liquidation / Insolvent stocks

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LTCG (Long-Term Capital Gains) loss on liquidated/under liquidation/insolvent stocks can be claimed as follows: 1. _Recognize the loss_: Recognize the LTCG loss when the stock is declared insolvent or liquidated. 2. _File Form ITR_: File your Income Tax Return (ITR) and report the LTCG loss in Schedule CG (Capital Gains). 3. _Set off against LTCG gains_: Set off the LTCG loss against any LTCG gains from other assets. 4. _Carry forward losses_: If the loss exceeds the gains, carry forward the unabsorbed loss for 8 assessment years. 5. _Set off against STCG_: If the loss is still unabsorbed, set it off against Short-Term Capital Gains (STCG) in subsequent years. 6. _Documentation_: Maintain documentation, such as: - Proof of investment - Liquidation/insolvency order - Proof of loss Note: - Consult a tax expert or chartered accountant to ensure accurate reporting and compliance. - The loss can only be claimed if the stock is officially declared insolvent or liquidated. - The carry-forward period is 8 years, and the loss can be set off against LTCG/STCG in subsequent years.

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