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LTCL of 'Trading Suspended' Equities
I purchased equity shares of a company in January 2018 and the share price declined almost to zero subsequently and its trading was also suspended in October 2019 by SEBI for non-compliance of Exchange Regulations by the company. As it is not possible to sell the shares now, how can I book the heavy LTCL(Long Term Capital Loss) of the Suspended Shares in my IT Returns? Is there a way to book the loss? The Company seems to be a fake one and there is no hope of its resuming trading in future.
Replies (1)
You generally cannot claim a capital loss for suspended shares because they are still in your possession. You must wait for a formal "transfer," such as legal extinguishment via liquidation or an off-market sale, to realize and book the loss for tax purposes. Consult a tax professional for guidance on specific company circumstances.
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