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Capital Gains

Rakesh sharma (chartered accountants) (43 Points)

01 December 2008

Dear all, I have an interesting Case, I have the Long Term Capital Gain from Sale of Property and Short Term capital Loss from sale of Mutual Funds. Can the Short Term capital Loss from Sale of Mutual Funds be set off against the Long Term Capital gain on Sale of Property? If Yes, Please give me a Case Law supporting the Fact and If No, Please give me a Case Law supporting the Fact

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5 Replies

rakesh kalani (Article assistant) (88 Points)
Replied 01 December 2008

The loss of the short term capital asset can be set off against LTCG and STCG, but loss of long term asset can be set off only against LTCG undersection 74 of income tax act. It is so simple and nothing intersting in it IS THERE

T.S.Mohana Harish (Audit Assistant) (163 Points)
Replied 02 December 2008

This only aplication of sec 74 of income tax act so STCL can be set off in LTCG but LTCL should set off only against LTCG

T.S.Mohana harish , harish_ts1984 @ yahoo.com

T.S.Mohana Harish (Audit Assistant) (163 Points)
Replied 02 December 2008

My father received house from his father as will in 1984-85 he incured Rs around 170000 for improvement in the same year and he sold the entire house on F.y 2007-2008 for consideration . The entire amount of Consideration is invested in caital gain account scheme in sbi before the due date . still the invested in capital gain account scheme is not utlised . My question is 1) can we use indxation for imrovement at the time of sale . 2) the invested amount is fully exepmted or partly exempted . pl help me most urgent Advance thanks e-mail- harish_ts1984 @ yahoo.com .

T.S.Mohana Harish