STCG on debt oriented fund

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This discussion addresses whether Short Term Capital Gains (STCG) from a debt-oriented fund can be offset against a Long Term Capital Loss (LTCL) from selling shares. The consensus is that this is incorrect, as LTCL can only be set off against Long Term Capital Gains. The ITR software appears to be auto-adjusting this incorrectly, and users are advised to wait for a software correction.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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16 September 2021 Assessee has Short Term Capital Gain without indexation from Debt Oriented Fund
He also has Long Term Capital Loss on sale of shares
After filling details in ITR 2 it is setting off Short Term Capital Gain without indexation from Debt Oriented Fund against Long Term Capital Loss on sale of shares and balance loss is c/f to next year
My question is whether above loss adjustement is correct

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 September 2021 Not right, as per the provision under Income Tax Act, the Long Term Capital Loss can be set off only against Long Term Capital Gains.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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17 September 2021 it is auto adjusted after filling form
what to do

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 September 2021 Wait for correction in ITR software.

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