Short term capital loss

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This query is : Resolved

CA Mehta Ankur N. (Querist)

28 January 2014 Dear Sir,

Can we set off short term capital loss under section 50 against any other income ???

Thanks in advance....

Aditya Maheshwari

Aditya Maheshwari (Expert)

28 January 2014 No stcl can be set off against stcg & ltcg only.

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AVTAR SINGH

AVTAR SINGH (Expert)

28 January 2014 Loss from transfer of a short term Capital Asset can be set off against gain from transfer of any other capital asset (Long Term or Short Term) in the same year. Loss from transfer of a Long term Capital Asset can be set off against gain from transfer of any other long term Capital Asset in the same year.

If there is a net loss under the head “Capital Gains” for an assessment year, the same cannot be set off against any other head of income viz., Salaries, House Property, Business or Profession or other sources. It has to be separated into Short term Capital Loss (STCL) and long term capital loss (LTCL) and carried forward to next assessment year. In the next year, the STCL can be set off against any gains from transfer of any capital asset (Long term or Short term) and the LTCL can be set off against gains from transfer of long term capital asset only. Any unabsorbed capital loss computed in an assessment year can be carried forward for eight assessment years and set off as above.

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