CONFUSION REGARDING THE LTCL ON SHARES???????

The Act Says That Long Term Capital Loss Can Be Adjust Again LTCG........It Means That If It Taxable Then Set Off is Given......

N If LTCG is Exempt.Then Question of Setoff Does Not Arise........

N LTCL on Shares (If STT paid).Then Can't Be Setoff Against LTCG on Capital Asset........

It Means That LTCG Arises ( IF STT Paid) Then Should Not Consider For Computation for Loss or Profit Whatever May Be.

Yes darsh*ta you can adjust share trading LTCL with any LTCG, there is no any restriction made in the ACT, as per circular no:-721/13.09.95 any loss detrmined under any other head can be set-off against LTCG.

Conclusion:- You Can set off LTCL with any LTCG this is not against the law.

Dear Darsh*ta,

LTCG on sale of Shares is exempt u/s 10(38) if STT is paid at the time of sale.

Now Loss from above transactions will be a dead loss n the same cannot be adjusted.

But Yes, Long term Capital loss on sale of shares which is NOT Exempt u/s 10(38) CAN BE ADJUSTED/ SET OFF WITH OTHER CAPITAL GAINS.

Darsh*ta,

As income from LTCG on securities is exempt as per 10(38), one cannot use the LTCL on sale of securities to set off Capital Gains on any other LTCG (assuming STT paid). Any long term loss on securities is a dead loss.

However, if one disposes securities without paying STT then LTCL becomes at par with any other LTCL/LTCG and can be set off. This is the only bit of tax planning which can be done using LTCL on shares, i.e.,selling without paying STT.

Thank you.

Since it is fully exempt u/s 10(38) u can not claim or deduct any loss suffered , expenditure incurred on these while calculating taxable income.

hi

the act says that if any income is exempt from tax, the loss or expense under the same can not be set off. so in your question loss can not be set off. 

Dear Darsh*ta...............

Agree with Amir bhai........

LTCG on Sale of Shares - Exempt u/s 10(38) if sale is routed through Stock Exchange and STT is paid...................

Loss from above transactions cannot be adjusted against any income......

Long term Capital loss on sale of shares not exempt u/s 10(38) can be set off against LTCG......

Originally posted by : dharmistha
	hi the act says that if any income is exempt from tax, the loss or expense under the same can not be set off. so in your question loss can not be set off.

can you please quote the section...thanks?

hi.....

LONG TERM CAPITAL LOSS ON SHARES (WHICH WAS SOLD THROUGH STOCK EXCHANGE ) ,

CAN WE SAID CAPITAL LOSS SET OFF AGAINST LTCG ON DEBENTURES OR NOT ???????????