Tax computation on sale of Rights Entitlements

Lets say, I purchase Rights Entitlement of a company and sell these rights entitlements without applying for the rights issue, what will be the tax implication of profits arising out of sale?
Likewise, if there are any losses arising due to such sale, can these losses be offset against other Short term capital gains?
PS: in the contract note, there does not seem to be STT paid for such transactions.

Hi @balaji, the income that you earned from the sale of Rights Entitlements shall be treated as Income from Other Sources and cannot be offset against other capital gains, as per my opinion of the scenario that you have presented. As there was no ownership of shares, the income gained will be classified under Income from other sources.