Whether long term capital loss incurred on equity shares can be offset against the long term capital gain on mutual fund units?
CA. Piyush Rawal (Businesss) (50 Points)
11 January 2020Whether long term capital loss incurred on equity shares can be offset against the long term capital gain on mutual fund units?
CA. Piyush Rawal
(Businesss)
(50 Points)
Replied 11 January 2020
Thank you for concurring view. I also have the same thoughts.
If you have incurred a long term capital loss on selling shares or equity mutual fund units after 31.3.2018 then you can set them off against any LTCG, as profits/gains on long term shares or equity funds are now taxable in excess of Rs. 1 lakh; this amendment was announced in Budget 2018. Also, you can carry forward these losses for setting off in later years up to 8 assessment years.
Prior to 31.03.2018, there was no tax on long term gains on shares & equity funds, therefore long term gains on shares & equity funds were considered as a dead loss. Therefore, the same was not allowed to set off or carried forward.
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 20 July 2020
Yes, long term capital loss incurred on equity shares can be offset against the long term capital gain on mutual fund units
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