Gopi (Engineer) (123 Points)
23 November 2021I have invested a huge amount over the last 4 years in a company. The company was struggling for all these years and now the bank has declared NPA status.
I am at a huge risk of loosing my entire investment.
Is there a possibility to deduct this in my future tax returns? I am an NRI and so don't have income in India, right now.
But if I sell some of my real estate can I offset these gains using my business investment losses?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160721 Points)
Replied 23 November 2021
Are the shares traded in market? or any purchaser as on date?
Gopi
(Engineer)
(123 Points)
Replied 06 December 2021
No. This is a private company which fell victim to Covid. Bank also declared NPA due to non payment of EMIs for the loan.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160721 Points)
Replied 06 December 2021
Unless you get your shares sold for any meager amount, no loss adjustment possible.
Gopi
(Engineer)
(123 Points)
Replied 06 December 2021
I have a few shares that I am planning to sell to the new owners.
If I sell all my shares can I write off all the amount I invested? If so, can I use this to offset any capital gains from real estate or stocks?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160721 Points)
Replied 06 December 2021
Yes, that is possible.
Gopi
(Engineer)
(123 Points)
Replied 06 December 2021
Thank you. If I sell the shares in this financial year, can I carry forward the loss to future years? I don't anticipate capital gains in this financial year to offset against the losses in the company.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160721 Points)
Replied 06 December 2021
Yes, carry forward of losses to next 8 years is allowed under PGBP & capital gains heads..
Gopi
(Engineer)
(123 Points)
Replied 07 December 2021
Thanks again.
Is it required to file an IT return this year (to take the loss incurred this year) or can I file a return in the year I have capital gains to deduct the loss incurred this year?
I don't file IT return every year as I don't have taxable income in India.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160721 Points)
Replied 07 December 2021
Don't do such mistake. File IT return for the loss claim, before due date.
CAclubindia
