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Set off STCL again LTCG on stocks

G Verma (>) (147 Points)

12 May 2022

I have sold some shares and have LTCG. I also have some recent stock purchases where i am in losses. Can i sell these shares and buy again and set-off this loss against LTCG. Can i buy them again immediately or it has to bought after 31st March 23.

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12 Replies

Kev Men (788 Points)
Replied 12 May 2022

You can sell the shares and claim the short term capital loss against the LTCG. You can buy the sold shares immediately, you don't need to wait to buy it after 31.03.2023.

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 12 May 2022

For which Financial Year you have LTCG ?

1 Like

G Verma (>) (147 Points)
Replied 13 May 2022

22-23, shares were sold last week.

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 13 May 2022

Pay tax on LTCG and go for averaging of equity instruments under loss

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G Verma (>) (147 Points)
Replied 13 May 2022

I can average and still claim STCL , can i not?

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 13 May 2022

No.If it sold for loss then only you can claim .

But the financial year is just started then why you want to book loss .It will not be counted for last year IT filing

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G Verma (>) (147 Points)
Replied 14 May 2022

I have Capital gain this year not last year, i want to reduce the LTCG, i am in loss right now in short term, if i dont book loss now i may not be able to book later and reduce the LTCG. If i can book loss now and buy at the same price it looks beneficial to me.

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 14 May 2022

It is upto you. Stocks have the advantage of shifting the tax burden through various routes

G Verma (>) (147 Points)
Replied 14 May 2022

Originally posted by : Eswar Reddy S
	Stocks have the advantage of shifting the tax burden through various routes

Can you elaborate or share some links.

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 14 May 2022

Sale is in your hands tax burden can be shifted to upcoming years.

Booking window loss in one account to minimise tax and booking profits in another account

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G Verma (>) (147 Points)
Replied 15 May 2022

Originally posted by : Eswar Reddy S
	No.If it sold for loss then only you can claim .

Example - I Buy 100 shares of company A for 1500 , now the price has reduced to 1000. I sell at 1000 and book loss and immediately buy back the shares at 1000. Later the price goes down further and i average but dont sell the shares. I can still claim short term loss for the 100 sold shares. Correct me if i am wrong.