Mark (Analyst) (44 Points)
14 June 2016Hello,
My father is a retired senior citizen. For last financial year, his only income is Rs. 1.53 lakhs from bank FD and Rs. 4200 from STCG from shares.
He is carrying forward STCL from shares of Rs. 7500 since last two years.
Since his total income is below exemption limit, while filing ITR, does he need to setoff STCG of 4200 against STCL of 7500 or he can carry forward STCL of 7500 to next year and simply deduct Rs. 4200 from 1.53 lakhs.
Please guide.
CA MANISH BINDAL
(CHARTERED ACCOUNTANT )
(535 Points)
Replied 14 June 2016
STCG can be carried forward to 8 years if it is not able to be set off. But there is no such provision in the act that such STCG shall mandatory be set off. For tax planning purpose you can carried forward such loss. In current year as as your total tax liability is nill because stcg u/s 111A is also not exceeding the basic exemption limit. Hence u can carry forward Rs 7500 without adjusting the same
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