Jignesh (Service) (66 Points)
10 March 2009Hi friends.
Have a query on calculating Total Tax. Assume my Salary Income is 5 lac and TDS is deducted every month. Also for the year I also made a LOSS by sale of shares say 1 lac.
How is total tax calculated in this case?
a) Is my year income taken as 4 lac or 5 lac
b) Do i get a refund if income is calculated as 4 lac
c) If not what happens to the LOSS i made ?
Please advice
PiyushAgrawal
(Chartered acooutant in practice)
(575 Points)
Replied 10 March 2009
| Originally posted by :Jignesh | ||
| " | Hi friends. Have a query on calculating Total Tax. Assume my Salary Income is 5 lac and TDS is deducted every month. Also for the year I also made a LOSS by sale of shares say 1 lac. How is total tax calculated in this case? a) Is my year income taken as 4 lac or 5 lac b) Do i get a refund if income is calculated as 4 lac c) If not what happens to the LOSS i made ? Please advice |
" |
Loss fom sales of share can't setoff against salary Income....
Pemmasani Purushotham
(M.B.A, C.A.Final)
(418 Points)
Replied 10 March 2009
Hi jignesh,
Your salary inome is 5 lakhs only.
u can not clubbed any loss with salary income except house property.
U r not mentioned whether it is Short term loss or Long term loss,
if it is short term loss u can setoff with the Long term & Short term capital gains
if it is Long term loss u can setoff with the Long term capital gains only.
Jignesh
(Service)
(66 Points)
Replied 10 March 2009
Hi Purushotham,
Thank you for the reply, Well I have both short term and long term loss..
I understand that it can be carried forward for next financial year. How is that done? I mean do i show it as a short term / long term loss while filing return?
Further what happens next year. Do I show this as a carry forward and then add the next year captial gain income.
Hope i have put my question right? Please advice
M.M.SURANA
(Director -Taxation )
(532 Points)
Replied 12 May 2009
Mr. Jinesh
both the Loss : STCL and LTCL r saparate term U hav to show saparately.There is a provision as per sec. 10 (33), 10(38) , 10(36) CG is not chargeable to tax , Coversely, in cases if assets r transfered at a loss, such capital loss is not taken in to consideration. Hence, LTCL on shares can not be c/f.
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