One of our clients owned Tier-1 bonds of Yes Bank which were written off in full by the company. As per my opinion, this would amount to extinguishment of rights in bonds held by the client and would result in a transfer of capital asset.
Therefore would the client be able to claim the amount of cost of acquisition of bonds as a short term/long term loss or is this view incorrect?
Inquiry into Tier-1 Bonds Write-Off: Does It Qualify as Capital Asset Transfer and Allow for Capital Loss Claim? A client owned Tier-1 bonds of a bank that were completely written off. The inquiry concerns whether this write-off constitutes the extinguishment of rights in the bonds, thus qualifying as a transfer of a capital asset. The question posed is whether the client can claim the cost of acquisition of these bonds as a short-term or long-term capital loss for tax purposes. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
