Entries for unlisted foreign company in itr-2 form


(Querist)
14 June 2019
Dear Experts, Could you help with my below queries with regard to filing FY2018-19 India tax returns (ITR-2 form)?

1. In General section (Other Details sub-section) of ITR-2 form, what should be the response (yes/no) to the questions "Whether you are Director in a company at any time during the previous year" and "Whether you have held unlisted shares at any time during the previous year" if the company was a foreign company? If the answer is 'Yes', then what should be entered in the "PAN" and "DIN" fields? In the ITR utility provided by the Income tax dept, it is mandatory to fill a 10 digit PAN and an 8 digit DIN but the company has no PAN or DIN since it is foreign.

2. I incorporated a company in USA in June 2017 and closed it 1.5 years later in December 2018. The company had no income or revenues during its 1.5 years of operations, and I reported an investment loss for this company in my personal 2018 US tax returns. Can this investment loss be reported in India tax returns? Would it be reported as a short-term or as a long-term capital loss? My resident status was ROR during this entire period.

Thanks in advance for your help!


CA R SEETHARAMAN (Expert)


Click to Talk 15 June 2019
1 No such reporting required in case of foreign company.
2 No reporting is required in case you are resident but not ordinary resident.

Neel (Querist)
17 June 2019
Dear Sir, Thank you for your response. To clarify point 2, I am a ROR (not a RNOR) and I would like to report the investment loss for this company to reduce my tax liability. Hence, is it OK to report this investment loss? If yes, should it be reported as a short-term or a long-term capital loss? Thanks

CA R SEETHARAMAN (Expert)


Click to Talk 17 June 2019
Report it as business loss( no short term or long term) and carry forward it. File ITR 3.

Neel (Querist)
24 June 2019
Thank you! I really appreciate your help


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