Capital Gains Loss Set Off
This query is : Resolved
26 July 2010
I am having loss under LTCG which is carried forward from A.Y. 2002-03. In the current A.Y. can it be set off against STCG.
please advice and also send me relevant case law for the same if any
please advice and also send me relevant case law for the same if any
26 July 2010
Long term capital loss cannot be set off against Short term capital gain in any A.Y.
26 July 2010
Dear PRadeep,
As per provisions of Carry forward of losses, from A.Y. 2002-03 onwards the provision stands changed. hence this provision being applicable after 2002-2003 i am of the opinion that the losses which pertaining to earlier period which remain, should be allowed to be set off against STCG as well as LTCG.
As per provisions of Carry forward of losses, from A.Y. 2002-03 onwards the provision stands changed. hence this provision being applicable after 2002-2003 i am of the opinion that the losses which pertaining to earlier period which remain, should be allowed to be set off against STCG as well as LTCG.
26 July 2010
Current provision for taxation should be followed and not erstwhile provisions.
for current year rule is LT against Long term only. Hence set off not possible.
for current year rule is LT against Long term only. Hence set off not possible.
26 July 2010
Aditya,
if you read the provision carefully, this provision is applicable for only losses which are carried forward after 2002-03. nothing is mentioned with regard to earlier period losses. so my loss in current year is eligible for set off against current year LTCG as well as STCG.
considering a fundamental rule benefit of doubt must be given to assessee.
Suggest.
in case you have any case law with regards to this kindly let me know for my confirmation.
if you read the provision carefully, this provision is applicable for only losses which are carried forward after 2002-03. nothing is mentioned with regard to earlier period losses. so my loss in current year is eligible for set off against current year LTCG as well as STCG.
considering a fundamental rule benefit of doubt must be given to assessee.
Suggest.
in case you have any case law with regards to this kindly let me know for my confirmation.
26 July 2010
Loss may be related to A.Y 2002-03. But STCG is related to current year. You cannot apply erstwhile provisions for the current year income.
26 July 2010
Where dose it says like that in the act or in notification or case Law. please help? provide me please.
26 July 2010
The section states itself that substitued by the Finance Act 2002 w. e. f. 1-4-2003.
So w. e. f. 01-4-2003 the new provision should be applied and not the old one.
It states this provision is applicable w. e. f. 01.04.2003 and not applicable to loss incurred after 2003.
So w. e. f. 01-4-2003 the new provision should be applied and not the old one.
It states this provision is applicable w. e. f. 01.04.2003 and not applicable to loss incurred after 2003.
26 July 2010
Dear Aditya
this provision is not applicable from A.Y. 2003-04. you are correct.
This is provision related to Losses set off.
so if i want to set of loss of period before 2002-03, with income of A.Y.2010-11 how come this provision is restricting me for not doing this.
i am not setting of losses of current year, i am trying to set off income of current year.
so technically there is loop hole in this provision and hence should be allowed.
even returns are also supporting this sort of adjustments.
kindly review again.
this provision is not applicable from A.Y. 2003-04. you are correct.
This is provision related to Losses set off.
so if i want to set of loss of period before 2002-03, with income of A.Y.2010-11 how come this provision is restricting me for not doing this.
i am not setting of losses of current year, i am trying to set off income of current year.
so technically there is loop hole in this provision and hence should be allowed.
even returns are also supporting this sort of adjustments.
kindly review again.
26 July 2010
In the return format also only b/f STCL can be set off against STCG and b/f LTCL with LTCG. See the format.
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