Capital gain

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Ajay (Querist)

18 March 2015 Mr. x sold a land held as investment n booked capital gain long term of rs. 90 lac.
in fy 14-15
he also suffered loss in commodity trading ncdx of 20 lac..
now ma question is .. Capital Gain tax will be on 70 lac or 90 lac
again commodity loss is frm non CCT commodity.. does it make any difference..

thanks in advance

Soubhagya Kumar Patra

Soubhagya Kumar Patra (Expert)

19 March 2015 Hi Ajay,

Losses from commodity trading can not be adjusted with capital gains. So the capital gains will be still 90Lacs

Ajay

Ajay (Querist)

21 March 2015 Patra ji thanks for ur response..
what if Mr. X treats Income from sale purchase of Land as Business Income..

Sir i mean to say.. Profit N loss from Share FNO & Commodity Trading from recognised Exchage is treated as business income..

Y negative business income will not set off from Capital gain Income or Other business income..

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

18 July 2024 Based on the information provided:

1. **Capital Gain Calculation:**
- Mr. X sold land held as investment, resulting in a long-term capital gain of Rs. 90 lakh in FY 2014-15.

2. **Commodity Trading Loss:**
- Mr. X suffered a loss of Rs. 20 lakh from commodity trading on NCDEX in the same financial year (FY 2014-15).

Now, addressing your questions:

- **Capital Gain Taxable Amount:**
The capital gain tax will be calculated on the net long-term capital gain after adjusting for any allowable losses. In this case:

- Long-Term Capital Gain = Rs. 90 lakh
- Commodity Trading Loss = Rs. 20 lakh

Therefore, the **net capital gain** for tax purposes would be:

Net Capital Gain = Rs. 90 lakh - Rs. 20 lakh = Rs. 70 lakh.

So, the capital gain tax will be levied on Rs. 70 lakh, not on Rs. 90 lakh.

- **Impact of Non-CCT Commodity Loss:**
The fact that the commodity trading loss occurred in non-CCT (Commodity Derivative Segment) commodities like those traded on NCDEX does not change the basic tax treatment of the capital gain. Losses from commodity trading can generally be set off against capital gains from the sale of assets like land.

In summary:

- The capital gain tax will be on the net capital gain after deducting the commodity trading loss. In this case, it would be on Rs. 70 lakh.
- The nature of the commodity loss (non-CCT commodities such as NCDEX) does not affect the offsetting of losses against capital gains for tax purposes.

Mr. X should ensure that he declares both the capital gain from the land sale and the commodity trading loss accurately in his income tax return, and consult with a tax advisor for precise calculations and compliance with tax laws.

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