Capital gain & set off

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This query is : Resolved

sunil heda (Querist)

02 October 2012 house A House B
Sale value 100 100
- cost 80 150

capital gain 20 -50

investment 15
54 to 54 Ga
for calculation of capital gain first allow exemption( capital gain of house A 5 & loss of house B -50. net loss carry forward -45) OR first allow set off capital gain ( net loss carry forward -30)
& why

CA Suresh Jain

CA Suresh Jain (Expert)

02 October 2012 Net loss carry forward is 45

SANJAY TALATI

SANJAY TALATI (Expert)

03 October 2012 While going through the provisions of Capital Gain and the set off and carry forward of losses, it can be interpreted that, an assessee has to claim an exemption available under any of the sections of the Income Tax Act,1961. After claiming an exemption, if the loss remains, then it should be set off against the Business profits/ LTCG/STCG etc.
Balance loss remains if any should be carry forward for the future year.

In your case, The Exemption of Investments of Rs. 15 is to be claimed first. Rs. 5 LTCG is still there which should be set off against the LTCL of Rs. 50 and Rs. 45 will be carry forward.

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