Capital gain sett off and carry forward

Tax queries 1478 views 10 replies

Yash.

Final CA Student

76 Points Joined September 2010

Mr. A have Short Term Capital Loss (STCL) of Rs. 10,00,000 arising from the transaction of

shares....and also, he has a Long term Capital Gain(LTCG) of Rs. 15,00,000 arising from the

transaction of Shares on which STT is also levied...and so the LTCG is exempt income u/s 10(38).

Thus,

Does Mr. A have 2 Sett off STCL of Rs. 10,00,000 with LTCG of Rs. 15,00,000 and nothing can be carried forward ?

OR

Mr. A can Carry Forward the Loss of Rs. 10,00,000 for setting off in subsequent years as it cannot be sett off against current year's exepmt income (LTCG) u/s10 (38) ?

---YASH--

Replies (10)

C.A. Jignesh N. Mehta

C.A.

1030 Points Joined January 2009

Mr. A can Carry Forward the Loss of Rs. 10,00,000 for setting off in subsequent years as it cannot be sett off against current year's exepmt income (LTCG) u/s10 (38)

Thats your answer, you will carry forward STC loss of Rs. 10 Lacs and treat LTCG as exempt.

Guest

Stcl is to be carry forwarded

CA LALIT WADHWA

FRESHER

105 Points Joined December 2011

u can carry forward d stcl

CS,CA F,Numrologi TusharSampat

CS CA F Numerologist Astrologer Graph

85935 Points Joined May 2010

STCL on shares is allowed to carried forward for 4 assessement years as its a speculative loss.

CA LALIT WADHWA

FRESHER

105 Points Joined December 2011

no it can be carry forward for 8 years as shares are held as investment nt as trade....

CS,CA F,Numrologi TusharSampat

CS CA F Numerologist Astrologer Graph

85935 Points Joined May 2010

@ Lalit - whther its held as investment or otherwise short term capital loss is not allowed to be carried forward for more then 4 years refer chapter on set off and carry forward of losses.

Secondly yash havent mentioned dat it was help for wat purpose, so how u say its help for investment?

CA Ankush Kukkar

CA in whole time practice

44 Points Joined January 2009

Mr. Tushar Ji........

It will be treated as capital gain and the same can be carried forward for 8 years.......

If u assume it as speculation loss then first of all u have to seen whether it is the business of the assessee or not...... if it is business then u are right otherwise it will be traeted as capital loss........