29 December 2009
long term capital gain on sale of shares through recognised stock exchange is exempt u/s 10(38) of IT ACT,1961.so no question of set off arises.
30 December 2009
Agree!!!! There is no question of Set-off untill there is not Long Term Capital Loss.
And also LTCG on shares is exempt u/s 10(38), subject to some conditions: (a) if Shares transferred through Recognized stock exchange & STT paid on transferred shares. (c) If shares hold for more then 12 Months.
According to me, Long Term Capital Loss on shares could not set-off with Long Term Capital Gain, because sec 10(38) says that LTCG on shares is exempt, and, according to Income Tax Rules,1961, If any income/gain is exempt then also any loss/expense from that asset/property cannot claim for tax reduction purpose. (Agricultural Income is good exemple)
Therefore, in my opnion LTCL on Shares cannot set-off with LTCG of other asset.
But, i want that other people also express their opinions on this issue.
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