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BENEFIT OF LONG TERM CAPITAL LOSS C/F

Kamal Verma (Financial advisor) (582 Points)

14 April 2021

Dear Expert,

Can benefit of long term capital loss be transferred to legal heir after death of investor?

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9 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 14 April 2021

Long Term Capital Loss can be carried forward by legal heir

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Kamal Verma (Financial advisor) (582 Points)
Replied 14 April 2021

Can LTCL (on bond) be transfer for complete 8 years after death of investor?

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 14 April 2021

You can carry forward these losses for setting off in later years up to 8 assessment years.

Ankit Neema (2742 Points)
Replied 15 April 2021

In my view ltcl cannot be carry forward by legal heir,

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 15 April 2021

Where legal heirs of a deceased-proprietor enters into partnership and carries on the same business in the same premises under the same trade name, there is succession by inheritance as contemplated in section 78(2) and assessee-firm is entitled to carry-forward and set-off of the deceased’s business loss against its income for subsequent years—CIT v. Madhukant M. Mehta [2002] 124 Taxman 130 (SC).

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Ankit Neema (2742 Points)
Replied 15 April 2021

Mr.Sourav Please provide the case related to LTCL, not business. that case related to business loss . Ok, I think you understand what I am telling you