Share with your friends

India: Treatment of long-term capital loss; bonus shares

India: Treatment long-term capital loss; bonus shares

The KPMG member firm in India has prepared reports about the following tax developments (read more at the hyperlinks provided below).


Related content

  • Long-term capital loss on sale of listed shares (income from which is exempt from tax) allowed to be carried forward and set-off against other long-term capital gains: The Kolkata Bench of the Income-tax Appellate Tribunal in the case of United Investments held that long-term capital loss arising on the sale of listed shares (income from which is exempt from tax) can be carried forward and set-off against other long-term capital gain. The case is: United Investments v. ACIT. Read a September 2019 report [PDF 231 KB]

  • Provisions do not apply to bonus shares: The Delhi Tribunal held that provisions of section 56(2)(vii)(c) of the Income-tax Act, 1961 do not apply with regard to bonus shares because, concerning bonus shares, there is neither any increase nor decrease in the wealth of the shareholder. Thus, provisions of section 56(2)(vii)(c) do not apply to bonus shares. The case is: Smt. Mamta Bhandari. Read a September 2019 report [PDF 814 KB]

© 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today