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Ltc loss

Khushi (professional) (44 Points)

24 July 2014

This year i sold shares worth 75k. These shares were all bought more than 12 months ago for 160k, so i have a loss of arounf 85K.

I am filing ITR-2, where shall i show this 75k (from selling of the sahres) in my ITR ?

Is this my excempt income ? (even though i didn't gain anything).

Please help/

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6 Replies

Ankit (CA, CS) (3064 Points)
Replied 24 July 2014

Dear Khushi,

Since you have suffered a long term loss, it cannot be carried forward and as such you need not disclose it in your ITR.

If you have any other queries, please feel free to ask.

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(Guest)

If you have held the shares for more than 12 months, then the resulting loss shall be termed as long-term capital loss (LTCL). The LTCL can be set off only against LTCG, if any, arising from sale of other long-term capital assets. Further, any LTCL that cannot be set off against LTCG arising in the same fiscal can be carried forward to subsequent eight fiscals. But this can be set off only against LTCG. Since LTCG on listed shares where securities transaction tax (STT) has been paid is exempt from income tax, a view prevailing is that LTCL from such shares where STT has been paid cannot be adjusted against any LTCG from any source. Further, the said LTCL cannot be carried forward to the next fiscals for the purpose of set off against the future capital gains. Accordingly, while selling the equity shares, if you had paid STT, then you may not be able to set-off the LTCL against LTCG arising from sale of any other long-term asset, or carry forward the same for future set off purpose

Ankit (CA, CS) (3064 Points)
Replied 24 July 2014

Dear Khushi,

Since you have suffered a long term loss, it cannot be carried forward and as such you need not disclose it in your ITR.

If you have any other queries, please feel free to ask.

Harshil (student) (65 Points)
Replied 24 July 2014

Dear khushi, Your long term capital loss is Rs.85000 and not other LTCG then u c/f to next year ....remember this Rs.85000 loss set off against only and only to LTCG not other...

aman (article) (264 Points)
Replied 24 July 2014

If shares are sold through recognised stock exchange, then loss will not be adjusted. There will not be any tax treatment.

Vineet Verma (Senior Credit Analyst) (25 Points)
Replied 26 July 2014

Dear Khushi: had there been gain in this case ,it would had been exempt since STT had been paid in that case. Since the gain would had been exempt,likewise any long term loss arising from sale of asset on which STT has been paid,will not be allowed to set off or carry forward. In your case, there will be no tax treatment.