LONG TERM CAPITAL LOSS

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P.S.VISHWANATHAN

P.S.VISHWANATHAN (Querist)
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18 July 2009 ARE LONG TERM CAPITAL LOSS IN WHICH STT HAS BEEN CHARGED ELIGIBLE TO BE CARRIED FORWARD AND SET OFF AGAINST FUTURE LONG TERM CAPITAL GAINS?

CA Vishvesh

CA Vishvesh (Expert)
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18 July 2009 as far as I know since long term capital gain on which STT has been charged is exempt, in same manner LTCL on which is STT is charged are not allowed to c/f . since the income is exempt the loss is not allowed to c/f

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taxindiaconnect

taxindiaconnect (Expert)
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18 July 2009 Vishvesh is right in his analysis.

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CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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18 July 2009 rightly said.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 July 2009 If income from a source is altogether exempt from tax (in this case income is exempt u/s 10(38) as STT has been paid) loss from that source cannot be set off against income from a different source or income under a different head or income under same head. Such loss cannot be carry forward.

Citation :- CIT Vs.Thiagarajan (1981) 129 ITR 115 (Mad).