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Loss on delisted shares

Others 260 views 1 replies
Dear Sir,
Can I show loss due to delisting of shares and reduce my personal income tax. Due to shares delisting it's value is zero in my holding statement since 2017 and there is no positive sign of relisting Or company starting
again.

Please guide.
Thanking you.
Sidney
Replies (1)

As per income tax act, an assessee either earns capital gain or incurs capital loss during transfer of shares. In your case I presume shares have been only delisted but those shares still exist so does your right on them. Once shares are delisted it is impossible to sell them unless the company offers some exit route. So that investment is actually irrecoverable and the investor cannot claim the loss as those shares haven't been transferred yet. After the company has gone into liquidation or if NCLT has order the company to extinguish share rights you can claim the entire indexed cost of acquisition as long term capital loss.    


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