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Itr2 ltcg question - help needed. thanks! :)

Tax queries 271 views 3 replies

anshuman sharma

3 Points Posted on 19 July 2018

Hello CAclubmembers, Can you pls answer a question I have in ITR2.

I have Short Term Capital Losses (e.g. 100 ) and Long Term Caiital Gains (tax exempt, sold before 1st jan 2018) of 100.

Now if I enter both of them in Schedule CG , then the losses to be carried forward are being net off. (i.e. 0 loss). I do not want this, as 100 LTCG is not taxable hence Rs 100 Short term capital loss should be carried forward.

So the question is should I mention the LTCG in the schedule CG ? Or should I mention the LTCG only in the Schedule EI (exempt income) tab ?

Regards,

Anshuman

Replies (3)

Vasundhara

Unemployed

182 Points Posted on 19 July 2018

Since LTCG is exempt income you have to mention the same in exempt income and you will mention STCL in Schedule CG. STCL can be carried forward and set off in future returns.

anshuman sharma

3 Points Posted on 19 July 2018

Thanks for the prompt reply Vasundhara ! Much appreciated. So you're saying I dont need to fill the LTCG in Sch CG, only in EI. Will it not incorrectly decrease my taxable income since total income would now be reduced by LTCG (decalred in Sch EI) ?

For e.g. if Total income is 200, now it will become 200+100 (Exempt LTCG) ?

Thanks but and can I find this mentioned anywhere ?