can Short capital loss on Equity can be adjusted through Short term Capital Gain on debenture on which STT is not paid.
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Can STCL be adjust with STCG
Replies (32)
yes it can be adjusted
Speculation loss can be adjusted against speculation income.
yes I agree with tushar and other CCI family views
yes it can be adjusted
@ ranch, @ tushar, @ rajni, @ future ca. . . . . . As per my opinion stcl on equity coverd u/s 111a i.e. Taxable @ 15% but stcg on debenture(stt not paid) not covered u/s 111a i.e. Taxable @ slab rate. . . . Then how we can adjust it. . . . . . . . I m not against any of u, only want clarification, plz correct me if i m wrong. . . . . Waiting for reply. . . . . THANKS
@ Mr JHA
Pls understand that wat u referred above r tax rates n are mentioned in diffrent chapter of IT ACT,1961.
Setting off Losses are governed by different chapters of it. Both chapters function independently.
Speculative loss even if short term can be still be set of against Speculative income of long term in nature, for which even rates are dfiff ................so there is no comparison as such u can make.
Hope ur cleared.
@ tusar yes i understand ur point but this is short term investment not speculative business. . . . Is i m wrong ???
@ Mr JHA-
I think u dont understand the question originally asked by Mr Sanjay Kumar.
He asked "short term capital loss on equity"
which itself denotes that it is a speculative transaction n not an short term investment????????
Since short term is always less than 12 months of holding shares as per IT ACT.
Hope now ur crystal clear in all aspects of this doubt.
@ Tushar . . . Mr. Sanjay not mantion intraday, then how i assume it speculative??
even I have the same doubt...Mr.Sanjay asked about Short term capital Loss and Gain.....nothing is mentioned about Intraday trading......then how we can treat it as speculation business?please clarify....
Pls contact Mr sanjay for further doubts to be solved of urs.
Anyway, thanks for participating in this forum
No one having any idea???
as per my knowledge u CANT adjust it.
reasons:
1)short term capital gains(be it positive gain or negative gain i.e. STCL) on equity shares n equity orietned funds are governed by sec 111A and accordingly charged at 15%.
2)whereas STCG on debentures are charged at normal slab rate i.e. @ 30%.
3)so STCL on equity shares on which gain is charged @ 15% cannot be adjusted against STCG on debentures on which gain is charged @ 30% as it would be in appropriate to set off loss which is otherwise chargeable @ 15% from gains on debentures which is chargable @ 30%.
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