Set- off

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manjit kaur (Querist)
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18 March 2014 LTCG ON HOUSE 10 LAC, LTCL ON NON LISTED SHARES 2 LAC, INVESTMENT U/S 54 10 LAC WHETHER LTCL BE CARRY FORWARD> NEEDED ANSWER WITH EVIDENCE.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 March 2014 1. Section 70 of the Income Tax Act deals with set-off of losses.

2. Sub-section 2 & sub-section 3 deal with set-off of STCL & LTCL with capital gain.

3. Sub-section 2 & 3 start with the following words:

"Where the result of the computation made for any assessment year under sections 48 to 55........ is a loss,

the assessee shall be entitled to have the amount of such loss set off against the income...."

4. SO FIRST you have to COMPUTE SEPARATELY capital gain on EACH ASSET.

Capital gain has to be computed as per Sections 48 to 55.

Exemptions are provided u/s 54.

Therefore exemption has to be provided for computing the FINAL amount of taxable capital gain.

Thereafter set-off provisions are to be applied.

5. In your case you have to first compute LTCG by considering exemption u/s 54. If taxable gain is left then set-off will be made.

So loss can be carried forward.