Suppose an Assessee has a Long term capital gain on sale of shares say Rs. 2,00,000/- during the current previous year and assume all the conditions laid under section 10(38) was satisfied. Hence it is fully exempted u/s 10(38). However, he has a Short term capital loss on sale of shares Say Rs. 50,000 during the current previous.
QUERY: 1. Whether the Short term capital loss should set off aginst Rs. 2,00,000 on LTCG and Remaining Rs. 1,50,000 was eligi ble for exemption u/s 10(38) OR 2. LTCG of Rs. 2,00,000 was fully eligible for exemption u/s 10(38) and STCL on sale of shares of Rs. 50,000 can be carry forward to next A.Y. (In that the 2 option is benefit to Assessee)
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