Stcg on sale of property

Tax queries 1181 views 8 replies

Vishhal K Bhartia

Partner

38 Points Joined October 2013

I have sold a property and there is a STCG of Rs. 15.00 lakhs. In the same year I am having business loss and short term capital loss on shares. Can the same be adjusted????

Please clarify.

Replies (8)

Rajiv Kaparthy

IPCC student

41 Points Joined November 2012

Originally posted by : Vishhal K Bhartia
	I have sold a property and there is a STCG of Rs. 15.00 lakhs. In the same year I am having business loss and short term capital loss on shares. Can the same be adjusted???? Please clarify.

as far as i can recall, as per sec. 72, business loss cannot be set-off against STCG, it must be carried forward until it can be set-off against business profits if any. and STCL from shares can be set-off against STCG.

Vishhal K Bhartia

Partner

38 Points Joined October 2013

Originally posted by : rajiv
	Originally posted by : Vishhal K Bhartia I have sold a property and there is a STCG of Rs. 15.00 lakhs. In the same year I am having business loss and short term capital loss on shares. Can the same be adjusted???? Please clarify. as far as i can recall, as per sec. 72, business loss cannot be set-off against STCG, it must be carried forward until it can be set-off against business profits if any. and STCL from shares can be set-off against STCG.

I am having short term capital loss on sale of shares of Rs. 10.00 lakhs. SO as per your reply I can adjust STCG on Sale of property of Rs. 15.00 lakhs from STCL on Sale of shares of Rs. 10.00 lakhs. So Net STCG will be Rs. 5.00 lakhs.?????

Aman

Finance Professional

604 Points Joined October 2012

yes vishal..it can be adjusted as you write..

Mihir

Wealth Manager

5293 Points Joined December 2008

No, STCG cannot be set off with business loss. STCG can be adjusted with STCL.

Saurabh Maheshwari

B.com ACA

5923 Points Joined December 2011

1.Business loss can be set-off against any capital gain. and also any other source of income(except salary)....but capital loss(ST/LT) cannot be set off against any source of income ...

2. ST capital loss can be set off against aST/L:T cap mgain but LT cap loss can be set off only against LT cap gain

CA Pallav Singhania

IT System Auditor

33683 Points Joined April 2010

Agree with Saurabh ji,

Short term Capital gain can be set off against Short term gain on sale of Property in your case.

Sr. No.	Section	Types of Loss	Set Off against Income		Can be carried forward (subject to Notes 4 and 8) for
			In same Assessment Year	In subsequent Assessment Year
1	71/72	Business or Profession (other than speculation or depreciation)	Any income under any head except Salaries	Business Income only	8 years
2	32(2)	Unabsorbed Depreciation	Any income under any head except Salaries	Any income under any head except Salaries	No restriction for of years number
3	73	Speculation Loss	Speculation profit only	Speculation profit only	4 years [8 years up to A.Y. 2005-06]
4	70/74	Short-term Capital Loss r.w.s. 94(7) in respect units of mutual funds or UTI/ securities & 94(8) in respect units of mutual funds or UTI (Notes 7 & 8)	Any Capital Gain	Any Capital Gain	8 years
5	70/74	Long-term Capital Loss (other than equity shares and units of equity oriented mutual fund which are subjected to STT)	Long-term Capital Gain	Long-term Capital Gain	8 years
6	71/74	Long-term Capital Loss on equity shares & units of equity oriented mutual fund which are subjected to STT	Not eligible for set off	Not eligible for set off	N.A.

Rajiv Kaparthy

IPCC student

41 Points Joined November 2012

Originally posted by : Vishhal K Bhartia
	Originally posted by : rajiv Originally posted by : Vishhal K Bhartia I have sold a property and there is a STCG of Rs. 15.00 lakhs. In the same year I am having business loss and short term capital loss on shares. Can the same be adjusted???? Please clarify. as far as i can recall, as per sec. 72, business loss cannot be set-off against STCG, it must be carried forward until it can be set-off against business profits if any. and STCL from shares can be set-off against STCG. I am having short term capital loss on sale of shares of Rs. 10.00 lakhs. SO as per your reply I can adjust STCG on Sale of property of Rs. 15.00 lakhs from STCL on Sale of shares of Rs. 10.00 lakhs. So Net STCG will be Rs. 5.00 lakhs.?????

yes. that is exactly what i meant.

Nikhil Kaushik

Fellow CA

86876 Points Joined June 2009

Dear Rajiv,

You need to correct your learnings on set-offs.

In this case, the assessee can set-off both the business loss and short term capital loss from shares against the short term capital gains from sale of property.