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Amount received from NSDL in the nature of Compensation

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This query is : Resolved

Piyush (Querist)

13 July 2022 Assessee had invested through a broker by giving liquid funds & shares as margin money & broker was trading on behalf of the Assessee by giving regular returns.

Later the broker got bankrupt & all shares along with liquid funds were stuck with the broker.
As the broker has pledged the shares for trading all the shares were lost by the assessee as there was no recovery from the broker.

Later the assessee alongwith other sufferers from the broker filed a complaint with NSDL regarding the matter against the broker house.

Against the same an lumpsum amount against the total value as on the date of broker becoming brankrupt was released by NSDL which is hardly 25% of the total loss.

So, how to account for the amount received from NSDL in the hands of the Assessee and its tax implications.

Query
1. whether the same will be adjusted against liquid funds or shares?
2. Capital gains / taxes arising on the same and at what value ?
3. Can this be treated as exempt as compensation received from NSDL ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 July 2022 1. Distribute it proportionately.
2. Calculate capital loss against shares & liquid fund lost with the broker house.
3. No exemption, but adjust capital loss against other CG or carry forward.

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