Loss on sale of Shares

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MANOJ CHOUDHARY

MANOJ CHOUDHARY (Querist)
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24 April 2009
Dear Expert,

If a ltd company have loss on sale of
share is it allow expenduture or
disallow

Vipul J. Bhavsar

Vipul J. Bhavsar (Expert)
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24 April 2009 If the company is engaged in the Business of sale/ purchase of shares then such loss will be allowed as business expenditure.
If not then such loss will be treated as Short /Long term Capital Loss depending upon the period of holding of the Investment in the Shares.

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Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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24 April 2009 agree with Vipul

CMA KNVV Sri Vidya - Sri Kanth

CMA KNVV Sri Vidya - Sri Kanth (Expert)
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24 April 2009 agree with vipul

taxindiaconnect

taxindiaconnect (Expert)
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01 May 2009 If the company is engaged in the business of sale and purchase of shares there is no question of any expenditure on account of loss as in the normal business activity the company will book the loss. However in the case of capital loss on as the company may be holding shares as investment, the loss will not be set off against the business income or any other income of the company. A capital loss can only be set off against the capital income only.

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