Tax on compensation from sebi invester protection fund

How the claim was raised? Based on that it would be loss...

the claim was raised based on the value as on the date of the claim of the shares. The cost in the balance sheet is much lower as the shares were bought many years ago.

So, if the claim was Rs 200, rs 170 was received and the cost was Rs 100

If the quantity of shares is known, rates as on 31.01.2018 is available on any exchange portal... thereby the gain/loss can be assessed.

Thanks Rambhiaji. But the qty and the names of shares are not available with the client as it was not given to him by IPF. Only lumpsum compensation was transferred.

As the compensation is less than claim, I cannot rely on the claim information too.

Let him produce any reliable document/s like demat account statement/s, or invoices of the broker etc. based on that any estimate can be made. Without that how can anyone help?

Moreover if the transaction had been performed before 31.03.2018; any gain was exempt u/s. 10(38) of the act; even if the claim amount be received after that.

@ Madhavi

The tax authorities, however, sought to tax such compensation as his income. ... Therefore, the compensation was received for a consideration, and such provision would not apply.

A capital receipt may be taxable as a capital gain. However, for a capital gain to be taxable, there has to be transfer of a capital asset

The position is not clear.

Thanks to you both