Effect when shares written off

Dear all,

I have invested in lakshmi Vilas bank and due to merger all shares were written off during nov 2020. Can I claim this purchase cost as loss in my itr for f.y 2020-2021?

Shares purchased on Mar 2020

Replies (3)
Quick Summary
An investor is asking if they can claim the purchase cost of Lakshmi Vilas Bank shares, which were written off due to a merger in November 2020, as a loss on their Income Tax Return (ITR) for the financial year 2020-2021. The shares were bought in March 2020. The initial response suggests this is not allowed under the IT Act, as there was no sale transaction, leading to a discussion about the fairness of this rule.

No. That is not allowed under IT act.

I have not received any amt on account of this neither I can claim as loss , this is totally unfair right?

Yes, that is the issue when there is no sale transaction...

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