Adjustment of BF loss wrt cg exemption of 1 lakh
This query is : Resolved
08 March 2024
You don’t incur LTCG tax on capital gains from ELSS up to Rs 1 lakh , is the 1 lakh limit only after adjustment of brought forward loss.
for example, BF loss is 4 lakh and capital gains for current year is 2 lakh. can i first adjust CY gain of 2 lakh with the exemption limit of 1 lakh and the balance remaining 1 lakh against loss BF of 4 lakh leaving 3 lakh to be carried forward; or will the CY gain of 2 lakh be first adjusted against BF losses of 4 lakh leaving no adjusted CY gains and exemption limit of 1 lakh unutilised. ( meaning it may be better to book gains 1 lakh greater than BF loss, to better fully utilise exemptions )
for example, BF loss is 4 lakh and capital gains for current year is 2 lakh. can i first adjust CY gain of 2 lakh with the exemption limit of 1 lakh and the balance remaining 1 lakh against loss BF of 4 lakh leaving 3 lakh to be carried forward; or will the CY gain of 2 lakh be first adjusted against BF losses of 4 lakh leaving no adjusted CY gains and exemption limit of 1 lakh unutilised. ( meaning it may be better to book gains 1 lakh greater than BF loss, to better fully utilise exemptions )
05 May 2024
Second option is correct.
05 May 2024
Thank you.
I do not like it but that is the law, I suppose
I do not like it but that is the law, I suppose
06 May 2024
Yes, that is the procedure.... None likes it, but need to accept it 'as it is.' Good Luck.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Sales return eway bill
- REGARDING GST LIABILITY/....
- Suggestions required for income tax filing-software (FY 2025-26)
- Loan by Partnership Firm
- E way bill for tractors
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- Free lancer income
- Long Term Service award taxability in hands of company
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
