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AMIT (Querist)
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17 July 2010
I PURCHASED 100 SHARES ( AS INVESTMENT ) OF A LTD. @ RS.550 PER SHARE ON 1 APRIL 2008
AND SOLD 100 SHARES @ RS. 500 PER SHARE ON 31 DEC 2009

MY QUERYS IS :
Q1. CAN LOSS ARISING OF SUCH WLL BE CARRIED FORWARD OR SET OFF ? IF YES UPTO HOW MUCH A.Y. AND FROM WHICH SOURCE/HEADS ?

Q2. WHAT WILL BE THE TREATMENT IF SUCH SHARE ARE HELD AS STOCK IN TRADE IN THE ABOVE RELATION ?

THANKS,

srinath

srinath (Expert)
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17 July 2010 point no.1 the loss arising out of the above would be treated as long term capital gain and it can be carried forward for a period of 8 years if the following condition is satisfied.
it is not sold through recognised stock exchange and STT is not paid.
if the condition is not satisfied, since gain is exempt loss cannot be carried forward
if it is held as stock in trade then it is business income and loss can be carried forward for 8 years