Can Long term capital loss on sale of equity shares be set off against long term capital gain either in the same yr or subsequent year ??? please quote section....
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 03 September 2010
The Long term capital gain on sale of equity shares is exempt from tax under Sec.10.
Accordingly, long term capital loss is also not allowable to be set off under Sec.14A.
Sunshine
(Helping All)
(10575 Points)
Replied 03 September 2010
i agree,...Ltcg on sale of shares is exempt u/s 10(38) so no set off of loss can be ........
Vicky
(CA, LCS,MCOM,)
(136 Points)
Replied 03 September 2010
sec 14A talks abt exp in relation to exempt income......so the term loss will not be covered.. under that section...... though its a general rule that losses in relation to exempt income cannot be set off but i think there is no section under income tax act which says that losses in relation to exempt income cannot be set off,or c/f and set off......
Hiren Bhandari
(CA Practise)
(93 Points)
Replied 17 September 2010
income exemp U/sec 10 are not part of computation of income so loss regarding those income are not also part of compution of income so set off of LTCL on sale of eqity shares is not allowed..
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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