ABC holds 1 Lac equity shares of XYZ Ltd acquired in 2000 @ Rs 10/- each. The current market rate for these shares is Rs 5/-. ABC has gifted this shares to XXX Family Trust in 2009.
If in the FY 2010-2011 if XXX Family Trust sells these shares in off market transaction at the market rate of Rs 5/- per share, how will the capital loss be computed.
1) Can XXX Family Trust claim indexation benefits ?
2) Can it claim long term capital loss @ Rs 10/- (plus indexation if applicable) less Rs 5/- market rate ?
3) Can this long term capital loss be used to offset against long term capital gains on sale of property in the FY 2010-2011 ?
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