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Is this a valid capital loss scenario?

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This query is : Resolved

Kapil Khanna (Querist)

08 January 2014 Property buy 2005 - 25L
Property sale 2013 - 35L (Net after sale expenses)
Indexed cost - 2013 - 38L (Applying cost inflation index from 2005->2013 on 25L)

Capital Loss = 38-35 = 3L

Can I show a capital loss of 3L in my income tax returns?
I would like to offset future gains against this loss.

Thanks,
Kapil

CA DHEERAJ

CA DHEERAJ (Expert)

08 January 2014 yes

you show such capital loss in your return
and read below analysis of section 74

LOSS UNDER THE HEAD CAPITAL GAIN u/s 74

Loss on short term capital asset
Any loss on short-term capital asset is allowed to be carried forward to be set-off
in subsequent years against capital gains (short-term as well as long-term). The
period of carry forward is 8 years.

Loss on Long-term capital asset
Any loss from long-term capital assets can also be carried forward to be set-off in
subsequent years but against only long-term capital gains. The period of carry
forward is 8 years.

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