Comment on Taxation Simplified

Arpit Kumar commented on 09 Dec 2013, 11:40 PM

Dear team,

I wanna book a LTCL from sales of stocks. I understand from your article that this can only be done if the stocks are sold in an off market transaction. In this context could you please clarify the following:

1. May I sell to my spouse and book the capital loss?
2. May I sell to my son and book the capital loss?
3. At what price should I sell the stock – market, lower/higher so that the transaction is not considered shady?
4. With respect to the off market transaction, is it as simple as handing over a DI slip marked “off market” to the DP with proper instructions at the sellers end and a receipt instruction to the DP at the buyers end with matched details and a cheque to the seller for the appropriate consideration?
5. What must be shown as the purpose of the sale?
6. Are there any specifics which I must be careful about so that the loss is not disallowed?


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