Carry forward Capital Losses against gains if gains are less than 1 lakh

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This discussion explores whether a taxpayer can opt out of setting off long-term capital losses against long-term capital gains if the gains are less than £1 lakh, in order to carry forward the losses to future years. The consensus is that taxpayers do not have this choice; losses must be set off against gains. No alternative methods or specific documentation clarifying this scenario were identified.

Raghu

Raghu (Querist)

25 July 2024 Hi
I would like to understand if a tax payer can opt to not setoff long term capital losses against long term capital gains, if the long term capital gains total to less than Rs 1 lakh. In this case can the tax payer carry forward these capital losses to future years.

Thank you so much for your response in advance.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 July 2024 No. There is no choice left to assessee in utility.

Raghu

Raghu (Querist)

26 July 2024 Thank you for your response. It is highly appreciated. Is there any other recourse available to the assessee (Eg: Filing returns through a different method) to carry forward these losses as I believe that in the Income tax act, there is no mention of this situation at all and it seems to be a grey area. Alternatively, is there any intimation or documentation which clarifies this situation in which the Assessee has capital gains totaling to less than Rs 1 lakh and also has capital losses and would like to carry the losses forward?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

26 July 2024 No. Not aware of any such alternate methods..

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