Capital loss - Delisted Shares

Hi, I hold demat shares that were delisted due to defaults by the company. Cannot sell it and it looks unlikely to relist again. Can I book this shares as a LTCL against the LTCG. Please revert.

Hello @Rajesh ,

You can report the loss only once you sell the shares. Alternatively, if you feel the Company would not be listed again in the future, you can write off the shares and report a loss in P&L Account. This loss can either be a long-term or short-term loss depending upon the holding period of the shares.

Thanks for the reply. Please clarify what is the P&L account wherein I can write off and report this LTCL (holding above 1 year). I use ITR-2 for individual.

Hello @Rajesh

If the sale of shares is treated as a Business Income (ITR-3), the taxpayer can write off the investment in shares and report a loss in the P&L Account. However, if you’re filing ITR-2, you can book the LTCL by showing the entire cost of acquisition as a loss in ITR. This loss can be set off against LTCG.