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Long term capital loss

Bhavesh (Accounts) (899 Points)

03 February 2013

Hi, Frnds, I have tax query on Sale of Long Term Capital Loss. I had Purchased a Shares of various co's (Listed in Stock Exchange) in the Year 2007, which of them are running in losses. I want to sell all shares. My query is whether the Loss on the sale of Equity Share will be taxable on my hand for the Current F.Y. 2012-13. I want to exit from all the shares which are at current loss and want to buy the other. Pls. help me in this case.

Thank in advance

Bhavesh

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7 Replies

Fenil Shah (Audit & Tax Executive) (402 Points)
Replied 03 February 2013

LTCG on sale of Shares on which STT is paid are exempt from tax.

So the LTCL on sale of Shares on which STT is paid; also cannot be used to set off against LTCG.

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 03 February 2013


	LTCG on sale of Shares on which STT is paid are exempt from tax. So the LTCL on sale of Shares on which STT is paid; also cannot be used to set off against LTCG.

Nikhil Kaushik (Fellow CA) (85085 Points)
Replied 03 February 2013

My query is whether the Loss on the sale of Equity Share will be taxable on my hand for the Current F.Y. 2012-13.

Read more at: /forum/long-term-capital-loss-237475.asp#.UQ5UcKPVWHc

since when did loss on capital gains become taxable? discounting for incorrect usage of word, Fenil has covered for other possible query of set offs

Harish (CA Student) (568 Points)
Replied 04 February 2013

Since the LTCG from such sale is itself it exempt u/s 10(38), then no question of setting off loss from same sale.

CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6871 Points)
Replied 04 February 2013

Remember

I you treat you Investment as stock-in-Trade non exemption will be available under Section 10(38), Therefore it may treat as buiness loss & can be set off under provisions of SET & CARRY FORWARD OF LOSSES

Dheeraj (Learner) (1100 Points)
Replied 04 February 2013

you have to show it as long term capital loss

since LTCG u/s 10(38) for sale of shares after 1 year of purchase from RSE is fully exempt

therefore you can not book loss for the same also. So, no question of SET OFF or Carried forward of loss arises at all.

Further you are not doing Speculation Business and now you can not carried forward the loss by debiting expenses and showing the loss of speculation business.

It was your investment and let it be investment.

If you show your loss as speculative business loss then all the incomes you recd from shares will be taxable at normal slab rates in future