long term capital gain

Save Share

This query is : Resolved

ca_nimisha (Querist)

01 July 2011 kindly help to resolve the issue mentioned below:
can longterm loss on equity/debt can be setoff with longterm gain on equity/debt and viseversa.can longterm gain /loss be setoff with longterm loss/gain under different category of assets

Mukesh Goyal

Mukesh Goyal (Expert)

01 July 2011 Hi Nimisha!!!

AS per Section of 74 of Income Tax Act -1961,there are no such individual assets criteria!!! It talks about the LTCL and LTCG from the Assets!!

as per your question raised loss can be set off but be careful these gain/loss is normal i.e. not a speculative one.

Hope this will be useful to you!!!
Thanks & Regards

ca_nimisha

ca_nimisha (Querist)

02 July 2011 thanks sir for your input

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

02 July 2011 In case of LTCG on sale of shares it is exempted from tax and like wise if there is loss on LTCG it can only be adjusted against LTCG on Sale of Shares otherwise the losses shall not be allowed to be carried forward. You can carry forward the same but has to be adjusted on ly against logn term.

In case of STCG on sale of share within the year you can adjust from short term capital gains but the unadjusted balance can be carried forward and is to be adjusted against short term capital gains only.

During the year Short term cannot be adjusted against long term or any other heads of income.

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)

02 July 2011 Agarwal Ji, it is not always.... particularly when the securities are not traded in stock exchange and STT is not paid. In that case, it can be set off against each others means LTCL can be adjusted against LTCG however LTCL can not be adjusted against STCG

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