CF OR SETOFF IN SHARES ??

This query is : Resolved

AMIT (Querist)
Follow

17 July 2010 I PURCHASED 100 SHARES ( AS INVESTMENT ) OF A LTD. @ RS.550 PER SHARE ON 1 APRIL 2008
AND SOLD 100 SHARES @ RS. 500 PER SHARE ON 31 DEC 2009

MY QUERYS IS :
Q1. CAN LOSS ARISING OF SUCH WLL BE CARRIED FORWARD OR SET OFF ? IF YES UPTO HOW MUCH A.Y. AND FROM WHICH SOURCE/HEADS ?

Q2. WHAT WILL BE THE TREATMENT IF SUCH SHARE ARE HELD AS STOCK IN TRADE IN THE ABOVE RELATION ?

srinath

srinath (Expert)
Follow

17 July 2010 point no.1 the loss arising out of the above would be treated as long term capital gain and it can be carried forward for a period of 8 years if the following condition is satisfied.
it is not sold through recognised stock exchange and STT is not paid.
if the condition is not satisfied, since gain is exempt loss cannot be carried forward
if it is held as stock in trade then it is business income and loss can be carried forward for 8 years

AMIT

AMIT (Querist)
Follow

18 July 2010 thanks very much

i also want to know can i hve a setoff option in the above case,

if yes , which source

srinath

srinath (Expert)
Follow

18 July 2010 Loss from business can be set of against any other income of the current year except salaries.
If business income is carried forward u can set off only against any business income in future years.
Long term Capital loss can be set off against long term capital gain only.

AMIT

AMIT (Querist)
Follow

18 July 2010 sir,

i would like to you please make adjustment in the top above query as you have assumed
that stt is not paid and not sold through recognised exchange, if

1. it is sold on BSE and STT is paid on the above shares

does that make any differnce in the opinion regarding setoff and cf

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
Follow

18 July 2010 STT SHORT TERM LOSS SET OFF BY LONG TERM GAINS AND SHORT TERM GAINS

IN CASE OF LOSS ON STT PAID SHARES NO DIFFERENCE BUT IN THE POINT OF PROFIT IT IS TAXED @ 15%

AND THERE SHORT TERM PROFIT INCLUDED IN NORMAL INCOME.

AMIT

AMIT (Querist)
Follow

19 July 2010 losses on share on which stt is paid and sold through recogonised exchange

1. what is tax treatment of such losses
can it be CF ? if yes upto how much AY ?

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
Follow

20 July 2010 loss on stt paid shares can be CF up 8 year.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now