08 January 2014
Property buy 2005 - 25L Property sale 2013 - 35L (Net after sale expenses) Indexed cost - 2013 - 38L (Applying cost inflation index from 2005->2013 on 25L)
Capital Loss = 38-35 = 3L
Can I show a capital loss of 3L in my income tax returns? I would like to offset future gains against this loss.
you show such capital loss in your return and read below analysis of section 74
LOSS UNDER THE HEAD CAPITAL GAIN u/s 74
Loss on short term capital asset Any loss on short-term capital asset is allowed to be carried forward to be set-off in subsequent years against capital gains (short-term as well as long-term). The period of carry forward is 8 years.
Loss on Long-term capital asset Any loss from long-term capital assets can also be carried forward to be set-off in subsequent years but against only long-term capital gains. The period of carry forward is 8 years.
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