Long term capital loss on shares

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Amruta Shewale (Querist)
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11 July 2012 MY QUERY IS WAT SHUD I DO WITH LONG TERM LOSS?

1)SHUD I C/F IT IN NEXT YEAR N USE IT FOR NEXT 8 YRS AGAINST LONG TERM GAIN WICH MAY ARISE WICH IS ALREADY EXEPMT U/S 10(38)??????

2) WAT IS THE TAX RATE ON STCG ON SHARES FOR AY 12-13?

PLS REPLY AT THE EARLIEST,THANKS IN ADVANCE
EMAIL:samruta1feb90@gmail.com

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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12 July 2012 If the long term capital loss has arisen from transfer of shares and STT has been paid at the time of sale, then such LTCL is NOT allowed. It is a dead loss and has no treatment.

If however, the loss arises on transfer of some other capital asset, it can be carried forward.

However, it can be set off only against LTCG.

So, if you transfer a property and LTCG arises, you can set off the LTCL against such LTCG.

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CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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12 July 2012 if your gain or Loss is from trf of Shares (on which STT is paid) it is an exempt income (including Loss) therefore no treatment for the same

loss is also an income and therefore it is also exempt therefore you cannot c/f

gain is already exempt

STCG on sale of shares is taxable at 15%

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CA PARTH SHAH

CA PARTH SHAH (Expert)
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13 March 2013 You havent mentioned whether the long term capital loss you incurred is from transfer of shares or transfer of other capital assets. If the loss is incurred by transfer of shares then such loss can be carried forward but not be used to setoff against any capital gains as such loss is exempt loss , STT paid on it. However if loss is incurred in transfer of other capital asset, then such loss can be carried forward for 8 assessment years and can be used to set-off against any long term capital gain except gain under 10(38) which is already exempt.