25 June 2009
An assessee has incurred Short Term Loss on sale of shares(on which STT was charged) in the Assessment Year 2008-09. In the assessment Year 2009-10, an assessee has earned Long Term Profit on sale of shares of a Private Company(No STT Charged). Please clarify whether Short Term Loss of earlier year can be set off againt the Long term pfofit of the Current Year
28 June 2009
I think this can be adjusted as the restriction placed for set off is long term loss against short term gain. Since in your case taxable gain is long term and loss to be set off is short term and hence there is no restriction in setting off the short term loss against the long term gain.
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