Carryforward of short term capital loss

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This discussion clarifies how to handle brought-forward short-term capital losses against current year short-term capital gains. Even if your current year income is below the taxable limit, you must first adjust the gain with the loss. Any remaining loss can then be carried forward to future tax years. It also confirms that long-term losses from shares purchased before January 31, 2018, can be consolidated under the grandfathering clause for Schedule 112A purposes.

PRIYA

PRIYA (Querist)
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21 December 2021 I have income only from short term capital gain of Rs 200000. I had brought forwarded short term capital loss of Rs 500000 from previous years. Can I carry forward the previous year loss of Rs 500000 as my current year income is below 250000 and is not taxable?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 December 2021 No, adjust the gain and carry forward only 3 lacs.

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PRIYA

PRIYA (Querist)
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28 December 2021 Long term loss I had purchased shares before 31st January 2018 which I sold in the financial year 2020-21. I incurred a long term loss of Rs 6,00,000. Can I give it as consolidated long term loss bought after 31st January 2018 in schedule 112a as grandfathering clause has no effect on loss?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 December 2021 Yes, you can do that no problem.

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