Adjustment of BF loss wrt cg exemption of 1 lakh
This query is : Resolved
08 March 2024
You don’t incur LTCG tax on capital gains from ELSS up to Rs 1 lakh , is the 1 lakh limit only after adjustment of brought forward loss.
for example, BF loss is 4 lakh and capital gains for current year is 2 lakh. can i first adjust CY gain of 2 lakh with the exemption limit of 1 lakh and the balance remaining 1 lakh against loss BF of 4 lakh leaving 3 lakh to be carried forward; or will the CY gain of 2 lakh be first adjusted against BF losses of 4 lakh leaving no adjusted CY gains and exemption limit of 1 lakh unutilised. ( meaning it may be better to book gains 1 lakh greater than BF loss, to better fully utilise exemptions )
for example, BF loss is 4 lakh and capital gains for current year is 2 lakh. can i first adjust CY gain of 2 lakh with the exemption limit of 1 lakh and the balance remaining 1 lakh against loss BF of 4 lakh leaving 3 lakh to be carried forward; or will the CY gain of 2 lakh be first adjusted against BF losses of 4 lakh leaving no adjusted CY gains and exemption limit of 1 lakh unutilised. ( meaning it may be better to book gains 1 lakh greater than BF loss, to better fully utilise exemptions )
05 May 2024
Second option is correct.
05 May 2024
Thank you.
I do not like it but that is the law, I suppose
I do not like it but that is the law, I suppose
06 May 2024
Yes, that is the procedure.... None likes it, but need to accept it 'as it is.' Good Luck.
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