Capital Gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2010 A TRADER DOES TARDING IN SHARES AS ON 28/2/2010 HIS POSITION IS AS FOLLOWS

LONG TERM CAPITAL (stt) RS 20

LONG TERM CAPITAL LOSS(STT) RS 5

SHORT TERM CAPITAL GAINS RS 8

SHORT TERM CAPITAL LOSS RS 20

HE ALSO HAS LONGTERM CAPITAL GAINS ON SALE OF LAND FOR RS 25

KINDLY COMPUTE HIS TAXABLE INCOME

IT IS VERY URGENT

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 March 2010 LTCG or LTCL on which STT paid is not relevant for computing total income.

Net STC loss of Rs. 12 will be set off against LTC Gain on sale of land of Rs. 25 and taxable income under the head capital gains will be Rs. 13

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2010 thank u very much for your prompt but i have a query is that is it possible that STCloss of Rs 12 could be adjusted with net LTCG which is exempt u/s 10(38) and LTCG on land would be subject to full tax pls reply

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 March 2010 No that is not possible as the gain is exempt you cannot set off the loss from short term against it. Also why do you want to pay unecessary tax when you have an option to set off the gain against the loss and you will pay tax on STCG if u/s 111A @ 15% whereas on LTCG you will pay tax @ 20%. So you will benefit more from the set off.