Srinivas Sharma KN (Tax Consultant) (292 Points)
23 October 2008Hi,
The assessee (Company) has filed the return for the A/Y 2006-07 within due date. During the financial year 2005-06, the assessee had short term capital gains from mutual funds which the company had set off to carried forward loss. Now, the IT assessment is going on? Whether setoff of carried forward loss with short term capital gain is right? Can assessing officer levy tax on STCG, if yes, at what rate?
madhur gupta
(student/article )
(1022 Points)
Replied 23 October 2008
| Originally posted by :Srinivas Sharma KN | ||
| " | Hi, The assessee (Company) has filed the return for the A/Y 2006-07 within due date. During the financial year 2005-06, the assessee had short term capital gains from mutual funds which the company had set off to carried forward loss. Now, the IT assessment is going on? Whether setoff of carried forward loss with short term capital gain is right? Can assessing officer levy tax on STCG, if yes, at what rate? |
" |
yes stcg can not be set off from business losses
stcg tax rate is 10%
Reetika Goel
(Qualified Chartered Accountant)
(565 Points)
Replied 23 October 2008
No, Carry forward losses can not be set off against Capital Gain of any type.
So, STCG will be taxable in this case @ 10% plus interest till date apart from the penalty which ITO may levy.
CAclubindia
