tax advise on selling rights issue

Hi,

I Have 100 shares of Karur Vysya Bank . It is offering rights issue 2:5

If I sell the rights and also the shares at discounted price, what will my tax treatment be

A. profits from selling rights

B. Loss from selling shares at post rights discount

regards

Replies (3)

Selling of rights amount to CG, as there is extinguishment of rights. Selling ur shares amount to STCL or LTCL (As the case ma be)

Thanks for the reply.

 

How will my tax treatment be if  I treat my income as business income?

 

regards

Instead of STCL, u will be having a business loss. However, ur rights issue will be treated as CG only. But u hve to prove that u induldge urself in the business of buying and selling of shares. U cannot set off the loss against salary

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details