Swady (Digital World) (115 Points)
24 January 2018Hi, due to trading in shares, I have incurred short term gains. So can that be adjusted with a loss in short term share trading? If yes, if I book losses today, can I re-buy the shares again after 3days?
Note: I also have a long term loss from share trading as well.
RAMAKRISHNAN R
(INCOME TAX OFFICER)
(1736 Points)
Replied 24 January 2018
Swady
(Digital World)
(115 Points)
Replied 24 January 2018
Let me rephrase my question. Can I reduce my short term gain tax by incuring short term loss? If yes, then after how many days can I re-purchase the sold shares?
RAMAKRISHNAN R
(INCOME TAX OFFICER)
(1736 Points)
Replied 24 January 2018
Swady
(Digital World)
(115 Points)
Replied 24 January 2018
Okay so after how many days can I re-purchase the sold shares?
RAMAKRISHNAN R
(INCOME TAX OFFICER)
(1736 Points)
Replied 24 January 2018
Prosenjit Sardar
(ACCOUNTANT)
(65 Points)
Replied 25 January 2018
I want to know which value of shares to be taken is it book value i.e. the amount of purchase or the market value for closing value ?
RAMAKRISHNAN R
(INCOME TAX OFFICER)
(1736 Points)
Replied 25 January 2018
Manjula Moorthy
(Qualified CS CA Finalist)
(209 Points)
Replied 25 January 2018
Let me rephrase the answer for you. Short Term Capital Losses can be adjusted with Short Term Capital Gains. Now in your case the first transaction is over. After 3 days you may enter into a new transaction. The Capital gains arising there is separate. That can be adjusted with Short Term Capital gains/Losses if (1) The transaction is short term in nature, (2) There exist STCG/STCL balance after adjustment.
Secondly, Long Term Capital Gains is exempt u/s 10(38). You cannot set-off the long term losses with Short Term or carry forward it nor adjust it with Other Long term Capital Gains arising in other Assets..
Hope that solves your query.
CAclubindia
