Claim Capital Loss on Worthless Shares

This query is : Resolved

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If your DHFL shares have become worthless due to capital reduction, you can generally claim a capital loss. The key is to establish the company's dissolution or worthlessness. For inherited shares, use the Fair Market Value (FMV) as of 31st January 2018 as your purchase value. You may need to check the company's current status with the Registrar if your CA requires proof of dissolution.

Khursheed Mavalwalla

Khursheed Mavalwalla (Querist)
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15 July 2022 I had 1515 shares of DHFL. and now they have become zero due to capital reduction . Can I claim capital loss on these shares

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 July 2022 Yes, you can claim capital loss in such a case.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 July 2022 Yes you can claim it, when the company gets legally dissolved.

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Khursheed Mavalwalla

Khursheed Mavalwalla (Querist)
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16 July 2022 Thanks Sir for clearing my doubt.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 July 2022 You are welcome ..

Khursheed Mavalwalla

Khursheed Mavalwalla (Querist)
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18 July 2022 I have inherited 1515 DhFL shares in 2017 from my Dad. My dad had purchased in 2005 or 2007 . Now in my demat statement it is showing as capital reduction and the shares have become zero. So can I claim capital loss on it if yes then what purchase value should I keep. Rs 10/- face value

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 July 2022 Take its FMV as on 31.01.2018.

Khursheed Mavalwalla

Khursheed Mavalwalla (Querist)
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18 July 2022 My CA is saying that I have no proof that co is dissolved. So I cannot claim capital loss. But in my demat holding statement DHFL SHARES VANISHED AND BECAME 0. AND NOW they are not in the holding statement. So I am in dilemma what to do.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 July 2022 Check the current status of the company from its Registrar.

Khursheed Mavalwalla

Khursheed Mavalwalla (Querist)
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18 July 2022 Thanks Sir for your help.

Khursheed Mavalwalla

Khursheed Mavalwalla (Querist)
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18 July 2022 Thanks Sir for your help.

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