Set- off
This query is : Resolved
manjit kaur
(Querist)
18 March 2014
LTCG ON HOUSE 10 LAC, LTCL ON NON LISTED SHARES 2 LAC, INVESTMENT U/S 54 10 LAC WHETHER LTCL BE CARRY FORWARD> NEEDED ANSWER WITH EVIDENCE.
18 March 2014
1. Section 70 of the Income Tax Act deals with set-off of losses.
2. Sub-section 2 & sub-section 3 deal with set-off of STCL & LTCL with capital gain.
3. Sub-section 2 & 3 start with the following words:
"Where the result of the computation made for any assessment year under sections 48 to 55........ is a loss,
the assessee shall be entitled to have the amount of such loss set off against the income...."
4. SO FIRST you have to COMPUTE SEPARATELY capital gain on EACH ASSET.
Capital gain has to be computed as per Sections 48 to 55.
Exemptions are provided u/s 54.
Therefore exemption has to be provided for computing the FINAL amount of taxable capital gain.
Thereafter set-off provisions are to be applied.
5. In your case you have to first compute LTCG by considering exemption u/s 54. If taxable gain is left then set-off will be made.
So loss can be carried forward.
2. Sub-section 2 & sub-section 3 deal with set-off of STCL & LTCL with capital gain.
3. Sub-section 2 & 3 start with the following words:
"Where the result of the computation made for any assessment year under sections 48 to 55........ is a loss,
the assessee shall be entitled to have the amount of such loss set off against the income...."
4. SO FIRST you have to COMPUTE SEPARATELY capital gain on EACH ASSET.
Capital gain has to be computed as per Sections 48 to 55.
Exemptions are provided u/s 54.
Therefore exemption has to be provided for computing the FINAL amount of taxable capital gain.
Thereafter set-off provisions are to be applied.
5. In your case you have to first compute LTCG by considering exemption u/s 54. If taxable gain is left then set-off will be made.
So loss can be carried forward.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Nursery business
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Tax on Amount transferred in HUF Account
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
