Set Off and Carry forward of losses

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This query is : Resolved

CA Ysil Karunai (Querist)

23 December 2008 Let us considered the example:

Suppose an Assessee has a Long term capital gain on sale of shares say Rs. 2,00,000/- during the current previous year and assume all the conditions laid under section 10(38) was satisfied. Hence it is fully exempted u/s 10(38). However, he has a Short term capital loss on sale of shares Say Rs. 50,000 during the current previous.

QUERY:
1. Whether the Short term capital loss should set off aginst Rs. 2,00,000 on LTCG and Remaining Rs. 1,50,000 was eligi ble for exemption u/s 10(38) OR
2. LTCG of Rs. 2,00,000 was fully eligible for exemption u/s 10(38) and STCL on sale of shares of Rs. 50,000 can be carry forward to next A.Y.
(In that the 2 option is benefit to Assessee)

ravi taneja

ravi taneja (Expert)

27 December 2008 As per section71, short term capital loss can be set off against long term capital loss. the word used here is can.

ravi taneja

ravi taneja (Expert)

27 December 2008 If there is no clear information then we should take interpetation in the favour of assess

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