Delisted shares sold in off market/ Rebate u/s87A

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This discussion addresses the tax implications of selling delisted shares off-market. Experts clarify that Section 50CA applies, and the Fair Market Value (FMV) can be determined using the last available financials, with a negative net worth resulting in an FMV of ₹0. The transaction should be reported under unlisted shares in Schedule CG. Regarding tax rebates, the utility's calculation allowing Section 87A rebate on normal income when total income exceeds thresholds or includes LTCG under Section 112A is identified as a glitch, and relying on it may lead to future tax demands.

suren

suren (Querist)

09 July 2026 Dear Experts,

The assessee has sold delisted shares bought 15-20 years back having negative book value in off market deal for 1500/- and shares transferred to buyer in Demat account incurring loss of 98000/-. These shares are not traded on the exchanges in last 5-10 years.
Does section 50CA applies to these transactions? If yes, how one can find FMV in absence of financial data for many years? Where it is to be shown in the schedule of Capital Gain?
Secondly, while filing return in form 3 for AY 2026-27 under new regime, the assessee has total income of 16 lac comparing of LTCG u/s 112A Rs. 7 lac and Normal income of Rs. 9 lac. The utility calculates tax on Normal income and Special rate income and allows 87A rebate on tax on normal income.
Is there technical glitch or it’s a correct position?
Your guidance will be highly appreciated.

Thanks

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

10 July 2026 Section 50CA applies. Download the last available financials from the MCA portal to compute the NAV. If the net worth is negative, the FMV is treated as ₹0. Report this under the unlisted shares section of Schedule CG.

This is a known utility glitch. Legally, no rebate is allowed when your total aggregate income exceeds the threshold or against LTCG u/s 112A. Relying on the utility's calculation may invite a future tax demand notice.

suren

suren (Querist)

10 July 2026 Thanks for your speedy reply.
It’s difficult to download reports from MCA website as companies involved are dysfunctional for many years. Moneycontrol shows negative book value as on 2020.
Is it safe to assume NIL value with screenshot preserved?
Is it ok to upload return with tax dues paid as self assessment with own working to avoid interest and penalty later on?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

04 November 2026 For off-market sales of delisted shares with negative net worth, treat FMV as zero under Section 50CA and report under unlisted shares in Schedule CG; meanwhile, disregard the ITR utility glitch regarding Section 87A rebates on income exceeding statutory limits to avoid future tax demands.

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