capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2011 Assessee is having a business of Lottery. He is having the short term loss on sale of shares and short term profit on sale of gold and short term profit on sale of land , whether the set off is available????????????

CA SIDDHARTH MEHRA

CA SIDDHARTH MEHRA (Expert)
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11 February 2011 The set off of short term capital loss on sale of shares should be permissible against the short term gains from the sale of land and gold. In such a case, the business of the assessee should be irrelevant.

CA Punit

CA Punit (Expert)
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11 February 2011 unless dealing in shares is considered as business,
Short term capital loss on sale of shares (which is subject to STT)cannot be set off against Short term capital gains on gold/land

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Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2011 mr punit , do u mean to say tht it can be set off only if it is a business income else no........????????????????????????
does the diff in rate of tax in case of short term profit of shares (15%) and short term profit land and gold (normal slab) makes a diff , for taking set off against each other in case of loss ??????????????

CA Punit

CA Punit (Expert)
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12 February 2011 yes.. the logic is correct, i also faced one case during my articleship in which it ws disallowed.

but nw i consulted this again to my principal sir,
he told me that the same has been allowed in recent cases> n yes set off is possible.

so m sorry, i would revert my opinion.