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
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
CAclubindia
