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How to report amount recd from NSE Investor protection fund in liu of 112 shares of Mah&Mah

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rajendra rao

Ex C M O

20 Points Posted on 28 June 2023

Sir

Recd Rs.61351.69 on 08/11/22 in my bank a/c from NSE in liu of 112 shares of Mah&Mah which were trapped due to closure of Karvy stock broking.These shares were bought between 22/06/18 to 03/05/19 .Highest rate paid being 905.75 while lowest rate paid being Rs 644 and total puchase cost being Rs72070.50 .How to show this in IT return since in November 2022 Mah & Mah was trading at much higher rate than the rate which NSE applied being the closing rate on the day of suspension of M/S Karvy stock broking.I apprehend software may not accept this rate if sale is shown on 08/11/2022 or later questions may be raised on capital loss claimed.Kindly help me in resolving my dilemma.

P R RAO

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Quick Summary

This discussion addresses how to report compensation received from the NSE Investor Protection Fund in lieu of shares trapped due to a stockbroker's closure. The user received funds for Mah&Mah shares and is unsure how to declare this in their IT return, especially concerning the purchase cost versus the compensation amount. Advice suggests reporting it under 'shares sold where STT not paid' and explaining the source if queried.