CA J.Alamelu lakshmi
(Chartered Accountant)
(852 Points)
Replied 29 July 2014
Long Term Capital loss can be set off Only against Long term capital gains.
CA J.Alamelu lakshmi
(Chartered Accountant)
(852 Points)
Replied 29 July 2014
@ Mr Ratan lal - LTCL cannot be set off against STCG
Priya
(Article Assistance)
(44 Points)
Replied 29 July 2014
@ Ratan lal, are you sure about short term capital gain...
M. N. JHA
(CA)
(8316 Points)
Replied 29 July 2014
Long Term Capital Loss on sale of shares (on which STT is Paid) can not be setoff against any head of income including ltcg. It is purely a dead loss as Long term Capital gain from sale of share ( on which STT is paid) is exempt.
In othercase you can setoff LTCL with LTCG only.
Correct me if i am wrong.
Thanks.
hemantmata
(articale assitanet. )
(28 Points)
Replied 29 July 2014
long term Capital Gain on Listed Seq. are Exampt from tax . Loss on long term share are not set off. or not carey forward.
CA J.Alamelu lakshmi
(Chartered Accountant)
(852 Points)
Replied 29 July 2014
@ M N Jha - You are right. If the LTCL is from shares, the gain from which would have otherwise be en exempt u/s 10(38) caanot be set off against LTCG.
Other than the above, setting off against LTCG can be done.
**Long term capital loss can be set off only against long-term capital gains and cannot be set off against short term capital gains.
** Loss from an exempt source cannot set-off against profits from a taxable source of income.
e.g. Long term capital loss on sale of shares sold through RSE cannot be set-off against the long term capital gains on sale of land.
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