Short Term Loss set off

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This discussion clarifies whether short-term capital losses from share trading can be used to offset long-term capital gains made from selling property. The consensus is that this is permissible, provided the shares are held in a dematerialised account. This strategy can help reduce your overall tax liability.

H Thakar

H Thakar (Querist)
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14 February 2023 I have short term loss in share market against which i have long term capital agst sale of Property. So to harvest loss i will sell the same and purchase on same time. I just wanted to know that the loss harvested can be set-off against my long term capital gain (with indexation) against sale of property.
What will be other impact on such transaction.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 February 2023 Yes, it (STCL) can be set off against the LTCG..
Check that the shares are delivered through your demate account, before purchasing them again.

H Thakar

H Thakar (Querist)
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14 February 2023 Yes it is in dematerialized form .

Thanks. As always be the first one to revert.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 February 2023 You are welcome.

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