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.............
Dhanya (nil) (62 Points)
08 December 2010Can 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.............
NUKUL GARG
(Senior Associate Consultant)
(1231 Points)
Replied 08 December 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)
(4775 Points)
Replied 08 December 2010
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)
Replied 22 December 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
rakesh b
(prop)
(21 Points)
Replied 29 October 2012
Saket Sinha
(Student)
(129 Points)
Replied 29 October 2012
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)
Replied 29 October 2012
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.
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