Itr 2 - reporting details of unlisted shares - ay 2019-20


Retired

ITR 2 for AY 2019-20 requires us to report full details of unlisted shares, including PAN no. of the companies.

Unlisted shares could arise due to voluntary delisting (after initial listing), due to violation of listing requirements, shares issued arising from demerger from another company with clear indication that the demerged company would be unlisted, companies closing down due to losses/other business problems, companies that issued shares in IPOs but later turned out to be by 'fly by night' operators, etc. In most of these cases, these unlisted companies do not send annual reports or other communications. No information is also available about these companies' activities from stock exchanges/Internet.

In this scenario, how does a person holding unlisted shares, whether in demat mode or not, be able to report the PAN no.of the companies, on the ITR form? Most of these shares are in physical mode and are not worth even the paper the certificates are printed.

Further, why does the Govt. want a complete list of all unlisted shares? Would it not suffice if details of only those unlisted shares that were acquired and/or sold (if one is lucky enough to find a buyer!) during the FY? In any case, sales of unlisted shares have to be reported under Capital Gains on the ITR form.

I feel the Govt. needs to rethink on this item on the ITR form, including the need to report the PAN of the companies, when no details about the company are available from any source.

I request experts to give their suggestions on this subject. Thanks.


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student

Yes, its unnecessary for penny stocks.

First they should provide list of PAN and other required details of all the companies, before asking such details.


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I have shares of CO-OP Banks . I believe these are to me mentioned in the ITR2.

Do I also have to mention PNCPS of the Banks (Perpetual Non-Cumulative Preference Shares (Non Transferable) ?

If yes, how to differentiate between the two since ITR2 has no provision for the same?

 
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Filling details of unlisted shares (including PAN No) in ITR 2 is really cumbersome, time consuming and may be next to impossible to comply fully. Details of PAN is not available for most of such companies. There are loss making companies which are dormant/under liquidation/already liquidated. Somebody might shares purchased by their parents and difficult/not possible to even transfer. Their registered office might have been shifted. Hence to get PAN of such companies is difficult and may be some times impossible. Hence matter needs to be taken up with government. Government should ask for list of unlisted shares but should avoid asking PAN No till some agencies like MCA. put such information on their website. This will serve purpose of government and reduce hassles of genuine tax payers Government have some specific intention of getting such information behind such information, but it will affect genuine tax payers. Particularly, I had planned to fill the income tax return by first week of June, as I will be away for next two months, but I am stuck up.

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chartered accountant

We have mindless FM in Arun Jaitely and now brainless FM in Nirmala Sitharaman. Taxpayers must unite and boycott filing tax returns. Tax terrorism unleashed creating fear factors in their mind. Would Govt ever realize this fact? 

 
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CONSULTING

As per one reply received for similar query for coperative bank shares, Dhiraj Rambhia Sir has replied that the Unlisted Shares are to be reported for entities registered under Companies Act and not Cooperative Act.

Since most of Cooperative Banks are registered under Cooperatives Act, the unlisted shares of such bank need not be declared in the ITR.

 

 
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CONSULTING

More details made available by Income Tax department:

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 PART A GENERAL tab.


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Retired

Thank you.

If one has filed his ITR already without the unlisted shares list (due to non-availability of this clarification earlier), is it necessary to file a revised ITR only for the purpose of including the unlisted shares held?

 
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