Can gain frm lng trm prorpty be adjstd shrt trm stock losses

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Rashmi (Querist)
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05 August 2012 Dear Friends,

I was reading an Article in ET NOW. Please clarify me, is the Gain from Long Term Property be adjusted with Short Term Stock losses..??

Article Says..

" The losses you made in stocks this year can bring down your tax. If you have made any long-term capital gains from the sale of property, gold or debt funds, you can set them off against short-term capital losses in stocks and reduce your tax liability. The short-term capital losses can be set off against both short-term capital gains as well as taxable long-term capital gains. This can be especially useful for someone who has booked profits in gold ETFs and physical gold this year.

Suppose you made a long-term capital gain of Rs 6 lakh by selling gold ETFs. The tax payable on this amount is Rs 60,000. If, on the other hand, you sold some stocks within a year of buying and made a short-term loss of Rs 3 lakh, you can set this off against the gains from gold ETFs. So the gain from gold will be reduced to only Rs 3 lakh and the payable tax will be Rs 30,000.

The losses that have not been adjusted can be carried forward for up to eight years. Besides, only short-term capital losses from stocks can be adjusted against other gains or carried forward. So, the stocks you bought more than a year ago will not be eligible"

Amol S Joglekar

Amol S Joglekar (Expert)
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05 August 2012 Yes, it is very much possible. No harm in doing so. DO you have any doubt about any specific section?

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Rashmi

Rashmi (Querist)
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05 August 2012 Hi Amol,
Might be silly question, but can you tell me here short term loss in stocks.. Can I consider delivery based trading, Intraday as well as F&O trading losses..

Rashmi

Rashmi (Querist)
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05 August 2012 Amol,

Can you please clarify here it has taken long term capital gain tax on Gold ETFs as 105, but as I know the taxation on gold ETFs will be 20% with indexation and 10% without indexation right..???

What will be the taxation on physical gold.. Will it be same as Gold ETFs..??

Thanks in advance..

Naresh Kansala

Naresh Kansala (Expert)
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06 August 2012 Intraday trading can't be taken as capital loss it's computed under pgbp.
Dilivery base trading can be consider but after considering the facts.. If u regularly doing this then its business otherwise short term gain or loss.

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Rashmi

Rashmi (Querist)
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06 August 2012 Thank you Naresh..:-)

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