Taxability of Amount received from NSE due to default by Amrapali Adhya (broker)

Hi

Copy pasting a query asked earlier by a caclub member as I have the same issue.

 

How will the amount received as compensation from SEBI Invester protection fund be taxed by the investor? Amrapali Aadya Trading and Investment, a Delhi-based broker, was declared a defaulter by the NSE and the investors were paid from the IPF. The investor is not provided with the breakup of shares for which the amount is paid. The amount received is less than the claim made by the investor. Will the amount received be taxation under capital gains? or Exempt if yes then under which head

Read more at: https://www.caclubindia.com/experts/amount-received-from-investor-protection-fund-of-nse-2761439.asp

Replies (1)

Hi

I was hoping for a reply. 

To protect exemption for genuine cases where the STT could not have been paid, the government had earlier issued the draft notification for comments. Pursuant to the public comments, it has issued the final notification which provides that all non-STT paid transactions will be eligible for exemption except for the negative list.

Will this notification allow grandfathering and capital gain exemption upto 1 lakh on amount received from IPF?

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