15 February 2013
Whether long term capital loss on sale of share can be adjusted against long term capital gain on sale of property (if shares are sell off market without paying STT)
18 February 2013
LTCG in respect of equity shares sold in recognized Stock Exchange and units of equity oriented fund which has suffered STT are exempt u/s 10(38) w.e.f. 01.10.2004. Losses of the taxable LTCG to be set off only against taxable long term capital gain. and not against exempt capital gain.
However, LTCG is not exempt in case STT is not paid on sale e.g. off market transactions, off market buy back etc. The benefit of set off would be available if you choose to do an off market sale with a purchaser at the prevailing market price.
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