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Can the loss on account of forfeiture of share application money be treated as short-term capital loss?

Open uri20170510 32134 7ezpi6?1494421819 jaggu asked over 2 years ago

Can the loss on account of forfeiture of share application money be treated as short-term capital loss?

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2 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

As capital gain arises when you sold some assets (here shares) which you purchase not for the purpose of resale.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 PURUSHOTTAM MUNDHRA answered over 2 years ago

No. Forfeiture of share application cannot be treated as capital Loss. As capital gain arises when you sold some assets (here shares) which you purchase not for the purpose of resale. Forfeiture of money arises when you didnot perform your commitment which you commit at the time of agreement.

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