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Carry Forward of Long Term Capital Loss on Shares (STT Paid)

shreyas (Student) (260 Points)

06 August 2009

Whether Long Term Capital Loss on Shares on which STT is paid is to be carried forward????

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8 Replies

CA KRIPA HARISH (CHARTERED ACCOUNTANT) (331 Points)
Replied 07 August 2009

Hi Shreyas as it is exempt we cannot carry forward the LTCL......we can deduct it from LTCG and show the remaining in the Exempt Column....if my view is wrong sorry for that....

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CA CS Amit Borade (Chief Accountant) (2828 Points)
Replied 07 August 2009

Hi Shreyas..

LTCG arising form transfer of Shares on which STT is paid is exempt u/s 10 (38) from capital gain tax.

Since Income is exempt we can not take benefit of Loss of the same, So we can not carry forward the Loss on LTCG on Shares

Ashish M (Chartered Accountant) (2731 Points)
Replied 08 August 2009

LOSSES FROM THE SOURCES FROM WHICH THE INCOME IS EXEMPT CAN'T BE CARRIED FORWARD............

Seetha (B.Com, CA) (278 Points)
Replied 10 August 2009

i agree with all of them

losses of an exempt income cannot be carried forward

ravi k (Service) (22 Points)
Replied 05 August 2012

Dear All,

I need your advice & help related to the Long term Capital loss.

I have recently switch to new org where i have to give my IT decleration.

I have purchased some shares in 2008 & 2009 for which i am occuring capital loss. Till date i have not decelared or carry forwarded the same in my IT return. Please confirm how can i carry forward those losses in my deceration.

Recently in 2012-13 i have gained some long term capital gain on share sale, please confirm can i setoff the gain against the loss in share sale.

IN case we purcased some share & we are in loss , how should we carry forward those losses.

Sorry for asking so many question.

Regards
Ravi Kokate

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CA PARAS BAFNA (Practising CA ) (33428 Points)
Replied 05 August 2012

In your IT declaration you need not to show the notional losses, which are not yet booked.

In your IT returns also the same formula will prevail.

You are an investor and shares are held by you as capital asset. Loss or proift will arise only when you will sale the shares.

Suppose out of 100 shares held of X Ltd, you sale 5, l;oss in respect of 5 has to be shown only.

Long Term Loss/ Gain is exempt from tax. No need to Carry forward the losses to setting them off in the next year.

ravi k (Service) (22 Points)
Replied 05 August 2012

Dear Mr.Bafna,

Thank you for the details.

Now i have some share purchased on 2008 & 2009, now if i sell all of them & i incur loss of 17000 then where should i book the same.

If i have long term capital gain can i offset with the above mentioned loss.

Regads

Ravi Kokate

CA PARAS BAFNA (Practising CA ) (33428 Points)
Replied 05 August 2012

Forget the loss of 17000.

At the year end , if in certain Long Term Shares , held for more than 12 monhts, if you earn handsome Gain (with all the best best) and earn earn Gains of 70000/- for your satisfaction you can say that your exempted Gain is not of 70000 but it's of 53000 in fact.

However, if you have Long Term capital Gain from other Capital Asset, loss of 17000 can not be set off .

The reason for the same is Share Loss is of the exempted Category.