https://www.taxtmi.com/article/detailed?id=420 Forfeiture of partly paid shares extinguishes the shareholder's rights and constitutes a transfer under Section 2(47); the amount paid on such forfeited shares is a loss. If shares are stock-in-trade the loss is a business loss; if shares are capital assets the loss is allowable under the head Capital Gains, subject to usual conditions. Allotment, even when calls remain unpaid, creates rights which, on forfeiture, are extinguished and within the scope of transfer. en-us Thu, 16 Jul 2009 00:00:00 +0530 Thu, 16 Jul 2009 18:25:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=420 Forfeiture of partly paid shares extinguishes the shareholder's rights and constitutes a transfer under Section 2(47); the amount paid on such forfeited shares is a loss. If shares are stock-in-trade the loss is a business loss; if shares are capital assets the loss is allowable under the head Capital Gains, subject to usual conditions. Allotment, even when calls remain unpaid, creates rights which, on forfeiture, are extinguished and within the scope of transfer. Articles Income Tax Thu, 16 Jul 2009 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=420