CF OR SETOFF IN SHARES ??
This query is : Resolved
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 ?
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 ?
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
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
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
i also want to know can i hve a setoff option in the above case,
if yes , which source
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.
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.
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
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
(Expert)
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.
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.
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 ?
1. what is tax treatment of such losses
can it be CF ? if yes upto how much AY ?
CA. Anoop Gadia
(Expert)
20 July 2010
loss on stt paid shares can be CF up 8 year.
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