Long Term Capital Loss on sale of shares

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Jitendra (Querist)
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04 May 2011 Hi,

1)Can I carry forward Long Term Capital Loss on sale of shares to next assessment year.

2) Can I adjust other Long Term capital gain against Long Term Capital Loss on sale of shares.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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04 May 2011 Your query is good but, what is the use of carry-forward of the Long term capital loss on sale of shares when the Long Term capital gain is exempt from tax. Section 10(38)

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Jitendra

Jitendra (Querist)
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04 May 2011 carry forward Long Term Capital Loss on sale of shares for adjusting against Long Term capital gain on sale of other assets other than shares.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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04 May 2011 Loss from exempt source cannot be carried forward - If the loss arising in the previous year was under a head not chargeable to tax, it could not be allowed to be carried forward and absorbed against income in a subsequent year from a taxable source. In such cases, neither the assessee is required to show the same in the return nor is the ITO under any obligation to compute or assess it, much less for the purpose of ‘carry forward’ - CIT v. Harprasad & Co. (P.) Ltd. [1975] 99 ITR 118 (SC).

Since gain is exempt loss cannot be used for set off or carried forward.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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04 May 2011 No. You cant do this. If you are getting an exemption from Income under particular head, then you cannot carry forward the loss from that particular head to set it off against any other taxable head whether from same source or any other source.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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