Short term capital gain

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rajat (Querist)
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09 June 2012 SIR

I HAVE SHORT TERM CAPITAL GAIN OF RS 11000/- FROM DEBIT FUND AND SHORT TERM LOSS OF RS 1200 FROM EQUITY FUND .

CAN I SET OFF SHORT TERM LOSS OF EQUITY FUND IE RS 1200 AGAINST SHORT TERM GAIN OF DEBIT FUND OF RS 11,000 . NET RS 11000-1200=9800.

THANKS

Guest

Guest (Expert)

09 June 2012 short term capital losses can be set off against both short term and long term capital gains. In the context of listed shares and mutual funds (both debt and equity), a period of over one year is long term, and anything less than that is considered short term. The corresponding time period for real estate and gold is three years.

The central theme of the idea is to use the equity market downturn to book short term capital losses. And then utilise these booked losses to set off long term or short term capital gains on gold, real estate or debt fund portfolios.

Yes losses from equity fund can be set off against losses from debt funds.

rajat

rajat (Querist)
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10 June 2012 Just clear me that short term loss from equity Mutual Fund of RS. 1200 can set off against short term debit Mutual Fund of RS. 11000/- Thanks

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