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Is it compulsory to adjust last years LTCapital loss against this years LTCapital gains,

Samantha J (732 Points)

12 May 2021  
1.last ay long term capital loss is rs 10000 which is carried forward.
2.This year ay long term gains is rs60000 which is less than 1lakh thus exempt.
can last yrs loss of rs10000 Not Be Adjusted against rs 60000 and can it be carried forward next year ?Or has it to be compulsorily adjusted this year?

 16 Replies

Sourav (Student) (23826 Points)
Replied 12 May 2021

Either you can adjust 10000 rupees against the long term capital gain or you can carry forward such loss

Samantha J (732 Points)
Replied 12 May 2021

Thanks but can you please share the relevant I T section

veerendar singh (tax consultant) (2818 Points)
Replied 12 May 2021

You cannot adjust loss against an exempt income

SUSHANT BIDAYE (503 Points)
Replied 12 May 2021

I agree with the views of Mr.Veerender Singh

Samantha J (732 Points)
Replied 12 May 2021

Does this mean that rs10000 will be carried forward to next year? will return utility allow it automatically?

Sourav (Student) (23826 Points)
Replied 12 May 2021

But long term capital loss can be set off against LTCG.. Why it will be exempt??

SUSHANT BIDAYE (503 Points)
Replied 12 May 2021

Ltcg upto Rs. 1 lakh is exempt

Samantha J (732 Points)
Replied 12 May 2021

Sourav please note ltcg upto rs1 lakh is exempt

Sivaramaraju G (Learner) (2350 Points)
Replied 12 May 2021

If it is exempt then it won't be taken into total income calculation then there will be no question of setting of loss with gain.
normally setting of carried forward losses with gain is optional.

Samantha J (732 Points)
Replied 12 May 2021

The point was I would set it off in the year when against ltcg is more than rs110000; not this year as I haven't made ltcg of rs 100000: it's just rs60000

veerendar singh (tax consultant) (2818 Points)
Replied 12 May 2021

As i said, you can set off only when your ltcg exceeds 1L. suppose your ltcg is 1,10,000 then you can only set off 10k.

Samantha J (732 Points)
Replied 12 May 2021

Can you please give the relevant sections?

veerendar singh (tax consultant) (2818 Points)
Replied 12 May 2021

Section 74

Samantha J (732 Points)
Replied 12 May 2021

Thanks. capital gains INCOME should be more than exempt income for loss set off.

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