Long term capital loss

LTCG on sale of Shares on which STT is paid are exempt from tax.

So the LTCL on sale of Shares on which STT is paid; also cannot be used to set off against LTCG.

since when did loss on capital gains become taxable? discounting for incorrect usage of word, Fenil has covered for other possible query of set offs

Hi

Since the LTCG from such sale is itself it exempt u/s 10(38), then no question of setting off loss from same sale.

Remember 

I you treat you Investment as stock-in-Trade non exemption will be available under Section 10(38), Therefore it may treat as buiness loss & can be set off under provisions of SET & CARRY FORWARD OF LOSSES  

you have to show it as long term capital loss

since LTCG u/s 10(38) for sale of shares after 1 year of purchase from RSE is fully exempt

therefore you can not book loss for the same also. So, no question of SET OFF or Carried forward of loss arises at all.

Further you are not doing Speculation Business and now you can not carried forward the loss by debiting expenses and showing the loss of speculation business.

It was your investment and let it be investment.

If you show your loss as speculative business loss then all the incomes you recd from shares will be taxable at normal slab rates in future

Tax is payable on Income not on losses. There is no treatment of long term capital loss on sale of listed equity shares as Long term capital Gain on sale of listed equity shares are exempt. Loss will be capital/dead loss which cannot be set off against any income & cannot be carry forward to next period.