Set off of Long Term Capital Loss

Tax queries 2261 views 8 replies

Dhanya

nil

62 Points Joined February 2009

Can current year long term capital loss of Rs.12,00,000 (on sale of equity shares dealt through stock exchange on which STT has been paid) be set off against current year short term capital gain of Rs.16,00,000?

Thank you.............

Replies (8)

NUKUL GARG

Senior Associate Consultant

1231 Points Joined June 2010

See, Long term capital gain on sale of shares on which STT has been paid is exempt from tax,

so for Long term capital loss on sale of shares also on which STT has been paid,NO SET OFF should Be Done.

Devendra

Chartered Accountant

4780 Points Joined March 2009

Hi Dhanya,

Long Term Capital Loss cannot be set off against Short Term capital Gain.

Long Term Capital Loss can only be set off against Long Term Capital Gain.

regards,

Devendra Kulkarni

Gulshan Kumar

Professional Accountant

119 Points Joined June 2010

Long Term Capital Loss cannot be set off against Short Term capital Gain.

Long Term Capital Loss can only be set off against Long Term Capital Gain.

Rahul Arora

B. Umapathy

student

405 Points Joined September 2008

AGREE WITH NUKUL GARG

Sunshine

Helping All

10575 Points Joined March 2010

agree with all..........

rakesh b

prop

21 Points Joined May 2011

i have long term capital loss from shares and long term profit from residential property sell in current year.can i set off shares loss against property profit.both transaction is in current year. kindly share view and thanks in advance. rakesh

Saket Sinha

Student

129 Points Joined October 2011

Hiii rakesh,

If there is a long term capital loss then it can be set off only from long term capital gains.In case of shares on which you have paid securities transaction tax and sold through recognised exchange then such loss on shares cannot be sett of against any income. If you are engaged in shares trading and it is a speculative transaction then loss on share cannot be set off against any other head of income.

Saket Sinha

Student

129 Points Joined October 2011

Hii Dhanya

If there is long term capital loss under sec 10(38) then it cannot be set off against any head of income.

Sec10(38) covers those transactions which are related to securities traded in a recognised stock exchanges and on ehich STT has been paid . then any long terma capital gain arising on the sale of such shares shall be exempt.

therefore if income from a particular source is exempt then you cannot set off loss from that source from any other head of income.

Hence long term capital loss under sec10(38) cannot be set off against any head of income.