25 February 2008
I have incurred a loss of narly 2.5 to 3 lacs in recent stock market crash. whereas I have earned profit on sale of property ( short term capital gain ) of Rs 2.5 lacs in current year. Kindly advise how I should compute my taxable income.
Can I set off stock market loss against my profit on slae of property
25 February 2008
BEING THE NATURE OF BOTH SHARES AND PROPERTY IS SHORT TERM GAIN/LOSS, YOU CAN SET OFF THE LOSS IN SHARES WITH SHORT TERM CAPITAL GAIN IN PROPERTY AND THE BALANCE GAIN IF LEFT OVER WILL BE ADDED TO YOUR INCOME AND WILL FORM PART OF YOUR GROSS TOTAL INCOME AND SHALL BE TAXED ACCORDINGLY.
25 February 2008
AS PER SECTION 70 SET OFF UNDER THE SAME HEAD UNDER CAPITAL GAIN IS POSSIBLE. EXCEPTION IS THAT LONG TERM CAPITAL LOSS CANNOT BE SET OF WITH SHORT TERM CAPITAL GAIN.YOU CAN SET OFF THE SHORT TERM CAPITAL GAIN FROM PROPERTY WITH SHORT TERM LOSS FROM SHARES.
CAclubindia
