SIR
Can we set off long term capital gain on bonds with long term capital gain on sale of share ( long term capital gain on sale of share is exempted under section 10)
Tnk
Mukesh Jain
mukesh jain (ca) (49 Points)
24 February 2012SIR
Can we set off long term capital gain on bonds with long term capital gain on sale of share ( long term capital gain on sale of share is exempted under section 10)
Tnk
Mukesh Jain
Anumanchipalli Sathikonda
(Tax Consultant)
(1559 Points)
Replied 24 February 2012
Mr.Mukesh Jain
Section 10(38) of Income-tax Act, 1961 is placed in Chapter III - Incomees which do not form part of total income.
Income from Capital Gains (Section 14 - Heads of Income) is placed in Chapter IV Computation of Total Income.
Section 74 - Losses under the head "Capital Gains" is placed in Chapter VI - Aggregation of Income and Set off of Loss is placed in Chapter VI.
You can compute the total income on aggregation of income and set of f of losses if any item of income falls under chapter IV.
The income specified u/s 10(38) is not an income which shall form part of total income. It is out of purview of total income.
Hence the exempted income u/s 10(38) cannot be set off of against a taxable item of income (Capital Gains)
Best Wishes
Sathikonda
Anumanchipalli Sathikonda
(Tax Consultant)
(1559 Points)
Replied 24 February 2012
Mr.Mukesh Jain
Section 10(38) of Income-tax Act, 1961 is placed in Chapter III - Incomees which do not form part of total income.
Income from Capital Gains (Section 14 - Heads of Income) is placed in Chapter IV Computation of Total Income.
Section 74 - Losses under the head "Capital Gains" is placed in Chapter VI - Aggregation of Income and Set off of Loss is placed in Chapter VI.
You can compute the total income on aggregation of income and set of f of losses if any item of income falls under chapter IV.
The income specified u/s 10(38) is not an income which shall form part of total income. It is out of purview of total income.
Hence the exempted income u/s 10(38) cannot be set off of against a taxable item of income (Capital Gains)
Best Wishes
Sathikonda
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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