Set-off st loss from shares against ltcg from property

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Kapil Khanna (Querist)
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13 August 2012 Can you give me a primer on setting-off carried-forward losses from Equity Shares against LTCG from House property?

Thanks,
Kapil

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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13 August 2012 Loss from sale of equity shares is a loss under the head Capital Gain.

The provision relating to carry forward and set off is as follows:

1. If such loss is a long term capital loss, then it can be set off ONLY against LTCG.

It CANNOT be set off against STCG.

2. If such loss is a short term capital loss, it can be set off either against STCG or LTCG.

For loss under the head capital gain, the nature of the asset is not relevant. What is relevant is the nature of the gain, LTCG or STCG.

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