Hi,
The assessee (Company) has filed the return for the A/Y 2006-07 within due date. During the financial year 2005-06, the assessee had short term capital gains from mutual funds which the company had set off to carried forward loss. Now, the IT assessment is going on? Whether setoff of carried forward loss with short term capital gain is right? Can assessing officer levy tax on STCG, if yes, at what rate?
| Originally posted by :Srinivas Sharma KN | ||
| " | Hi, The assessee (Company) has filed the return for the A/Y 2006-07 within due date. During the financial year 2005-06, the assessee had short term capital gains from mutual funds which the company had set off to carried forward loss. Now, the IT assessment is going on? Whether setoff of carried forward loss with short term capital gain is right? Can assessing officer levy tax on STCG, if yes, at what rate? |
" |
yes stcg can not be set off from business losses
stcg tax rate is 10%
No, Carry forward losses can not be set off against Capital Gain of any type.
So, STCG will be taxable in this case @ 10% plus interest till date apart from the penalty which ITO may levy.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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