Long term loss on sale of shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2011 Sir,
What is the treatment for Long Term Loss from sale of shares? Is it set off against current year profits and carry forward to next year. Please give full details

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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04 August 2011 If the loss is on share on which STT is paid, then there will be no treatment as the profit from same is exempt from tax therefor loss from the same shall also not be set off from any other income.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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04 August 2011 Otherwise it will be taxable in accordance with provisions of section 112 read alongwith its provisio.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2011 Sir,
Thank you for your quick reply

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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07 August 2011 If you treated as investment than for long term loss, no deduction but if you treated this ad business than you can take carry forward this loss for 8 years.

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2011 Sir,
Thank you for your good suggestion.