LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Disclosure of shares of an unlisted company which was earlier listed

Pawan Mittal (CA Final) (702 Points)

12 July 2019

Respected Experts

Mr. X purchased shares of many companies in 1995. All these companies were listed in 1995. Subsequently with passage of time many companies have been delisted and many have been stricken off.

According to new rules if an assessee holds shares of unlisted company than he has to disclose the same in ITR-2.

My question is whether the shares of delisted companies need to be shown in form ITR-2? We also have to mention PAN of these companies. So how to get PAN of delisted companies?

My client also wants to disclose the shares of those companies which have been stricken off by MCA. He wants to claim capital loss in future whenever he has capital gain in other shares. So how to know the PAN of stricken off companies?

Reply
Follow
Share

8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 13 July 2019

Yes, its really difficult task, specifically companies not registered with GST (or in winding off state)

Hope, CPC considers this and allows ISIN code of the company in lieu of PAN.

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 16 July 2019

There are three types of shares I feel:

1) Listed Securities -- These are daily traded on NSE and BSE

2) Delisted Securities -- These are the ones that were once listed on NSE or BSE and now delisted

3) Unlisted Securities -- What are these? Any example?

And,

My question is do we have to report the "Delisted" shares in the ITR? Eg ESSAR STEEL LTD was once listed share and traded and then got delisted. Should ESSAR STEEL be declared on ITR form?

Please help.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 16 July 2019

As replied by helpline..... all the securities not listed at present on any exchange be it delisted or unlisted are required to be declared in the ITR; though no clarification from CPC/ Grievance section...

1 Like

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 18 July 2019

Originally posted by : Dhirajlal Rambhia
	As replied by helpline..... all the securities not listed at present on any exchange be it delisted or unlisted are required to be declared in the ITR; though no clarification from CPC/ Grievance section...

Should we interpret CPC response that

if a security was once listed on any of the recognised stock exchanges (BSE and NSE), then even if that security got delisted, it should get declared?

Is that a fair assumption?

There is another response on this forum which says Unlisted are those shares which have never been listed on any stock exchange in their lifetime. Eg Local Cooperative Banks or Local Merchant Banks.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 18 July 2019

First option is more suitable.

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 07 August 2019

Atleast two responses, one on this forum and one from another expert received saying that a company share that was once listed, now delisted and lying in assessee demat account is not falling under "Unlisted Shares" category.

My grievance with CPC-ITR for 35 days was not attended.

A call with EFiling Helpdesk on 6th August confirmed only one thing -- Unlisted Shares of entities falling in Company Act are to be declared. The person answering call could not define whether Delisted Shares are called Unlisted Shares.

My email to CBDT board and Chairman from last 15 days is left unanswered. They either dont read emails or concerns, or they dont care.

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 09 August 2019

All, there is more clarity now available from Income Tax department on this Unlisted Shares item.

Please find the link:

https://economictimes.indiatimes.com/wealth/tax/itr-filing-faqs-heres-what-to-do-if-you-dont-have-pan-of-unlisted-company/articleshow/70599931.cms?utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&utm_content=23

Question 5: I have held equity shares of a company which were previously listed in a recognised stock exchange, but delisted subsequently, and became unlisted. How do I report PAN of company in the column "whether you have held unlisted equity shares at any time during the previous year"?
Answer: In such cases, PAN of the company may be furnished if it is available. In case PAN of delisted company cannot be obtained, you may enter a default value in place of PAN, as "NNNNN0000N".

This clears the doubt that the previously Listed shares now delisted on exchange, must be declared in the ITR2 / ITR3 PART A GENERAL tab.

Pawan Mittal (CA Final) (702 Points)
Replied 24 September 2020

For f.y 31.03.2020 ITR VI has been prescribed on ITR site in excel proforma on 22.09.2020, in this at Schedule-SH1 sheet C [SHAREHOLDING OF UNLISTED COMPANY], (Details of shareholders who is not a shareholder at the end of the previous year but was a shareholder at any time during the previous year ) a new column of Aadhaar has been added, since company does not has Aadhaar of many shareholders and they are not interested in giving now their Aadhaar no. as they are not shareholders. Please let me know what to be inserted against them in Aadhaar Column.For f.y 31.03.2020 ITR VI has been prescribed on ITR site in excel proforma on 22.09.2020, in this at Schedule-SH1 sheet C [SHAREHOLDING OF UNLISTED COMPANY], (Details of shareholders who is not a shareholder at the end of the previous year but was a shareholder at any time during the previous year ) a new column of Aadhaar has been added, since company does not has Aadhaar of many shareholders and they are not interested in giving now their Aadhaar no. as they are not shareholders. Please let me know what to be inserted against them in Aadhaar Column.

What to be written if shareholder is Private limited, LLP, Huf who does not have Aadhaar Card/No.