Capital Gain Tax

If I purchase 100 shares at Rs. 100 per share on 01st July, 2010 from listed stock exchange.

However on 03rd July, 2010 I came to know that my shares cannot be delivered to me as the person who was selling was unable to deliver. So I get 100 shares back at Rs. 105/share.

In this Scenario, does Capital Gain arise?

If yes, how?

Thanks

Sunny

Replies (7)

Ya for capital gain transfer is must ........ but as no transfer takes place it will not be treated as capital gain.................... but it may be treated as speculation gain as no delivery has taken place or else can be taken as business gain...........

dear sunny

there is no transfer of anything between u and the dealer.definately it will not attracts any capital gain but the above case is covered under the defination of speculation business.so it is a business income and u are liable to pay tax on that income.

thr is no trnsfr so no qust. arise of capital gain

NO CAPITAL GAIN AND HENCE NO CGT

Thanks All.

 

How can it be considered as speculation gain because the other party failed to deliver but I had ordered genuine purchase.

 

dear sunny

speculation transaction is arises when there is no transfer between the parties and they book a profit without transfer.though there is genuine purchase but it is difficult to conveyance ao in regard to this.

Thanks Tarun.

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