UPDATE - Here is the reply received from helpdesk:
"As per the provisions of Income Tax Act, 1961 the exemption of Rs.1,00,000 should be provided while calculating Tax and not for the purpose of computing Income. Therefore for complying with the same in Utility the exemption field of Rs.1,00,000 provided in Schedule CG has been greyed-off(Tag “LessLTCGThresholdLimit” has been removed and the same shall be provided while computing Tax in Schedule SI so that the true intention of law can be complied with."
QUERY - I am still unclear how to accommodate this in the ITR2 utility. I have Rs 9601 of STCL from AY 2018-2019 which I have filled in Schedule CFL to carry forward. Then, I have LTCG of Rs 16897 in this year which has been filled in Schedule CG (which should be non-taxable since it is under the threshold limit).
Now the excel utility is setting-off these two figures and remaining Rs 7296 (16897-9601) are being shown as current year’s income remaining after set off. This is incorrect, because I should be able to carry forward the full amount of STCL (Rs 9601) for next year, and no set-off should be done as Rs 1,00,000 of LTCG is tax exempt. Please note - while calculating tax from the utility, the net tax turns out to be correct (it considers exemption in background) - however, the STCL can not be carried forward and unnecessarily getting adjusted i.e. Total loss Carried Forward to future years = Zero
Can someone here provide any suggestion on how to resolve this considering the reply from helpdesk i.e. how to fill this information in Schedule SI ?