Loss from shares in a pvt. ltd. co.

672 views 5 replies

Hi frenz...

 

Had a doubt... Mr. X has invested around 6 lakhs in a pvt. ltd. co. Now that company will be getting closed down soon. Due to losses, the company will not be able to repay back the investment of 6 lakhs.

 

So, can X claim that loss under PGBP ?

 

Thanks in advance

Replies (5)

Dear Vidisha,

Wat was the mode of investment in Pvt. Ltd?

1) If through shares/debentures -

            -        Held as capital asset - Capital Loss

           -         Held as Inventory - It will be removed from the valuation of closing stock and automaticaly the profit gets adjusted.

2) As a loan other than debenture -

          -          If advance was givrn in a normal course of business of Mr. X - deduction will be allowed u/s 36

         -          in personal capacity - No treatment i:e dead loss.

Agree wid d answer of Amir Sir

vidisha,

i presume you were asking in the angle that the investment which is lost can be claimed or not?

It cannot be claimed as a business loss as you didn't mention he is doing the same as business. 

You itself say that it is an investment, hence can be claimed only in Capital Gains Head subject to proper evidence as to the loss.

Originally posted by : SIVASIVA

vidisha,

i presume you were asking in the angle that the investment which is lost can be claimed or not?

It cannot be claimed as a business loss as you didn't mention he is doing the same as business. 

You itself say that it is an investment, hence can be claimed only in Capital Gains Head subject to proper evidence as to the loss.

 agree with sivasiva

 

I TOTALLY AGREE WITH SIVASIVA ,BUT SIVASIVA I WANTED TO KNOW THAT IF THE COMPANY IS GOING TO BE LIQUIDATED AND THE ASSESSE IS NOT GOING TO RECIEVE ANYTHING WHETHER THIS WOULD BE CONSIDERED AS A TRANSFER OF CAPITAL ASSET AS DEFINED WITHIN THE SCOPE OF CAPITAL GAIN BECAUSE IF IT IS NOT CONSIDERED AS A CAPITAL ASSET THEN THERE CANNOT BE ANY CAPITAL GAIN/LOSS 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details