Sale of unlisted shares - capital loss

ITR 170 views 2 replies

I have a query for experts in this forum

I had invested an amount of Rs 17 lakhs in an unlisted company as a private equity investment in March 2015. On account of losses in the invested entity business, I sold off the investment for Rs 11.3 Lakhs in August 2018, after a period of 3 years and 5 months, resulting in a loss of Rs 5.7 Lakhs. All of the buy and sell transactions are off-market transactions. The query I have is

  1. Is this transaction a long term capital loss?
  2. Can I offset the loss of Rs 5.7 lakhs that I have incurred against
    1. Any potential long capital gains from equity
    2. Any potential long term capital gains from sale of property
  3. Besides claiming capital loss, can I also apply indexation?

Shall appreciate advice experts

Look forward to hearing from you

regards

P S Krishnan

Replies (2)
1.Yes,This is a long term capital loss
2.You can set off long term capital loss from any long term capital gain from equity or sale of property.
3.Yes, you can apply indexation since it is an equity investment.

Loss from Sale of unlisted Shares can be setoff with gains from property?


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