Long term capital gain

Mr.Mukesh Jain

Section 10(38) of Income-tax Act, 1961 is placed in Chapter III - Incomees which do not form part of total income.

Income from Capital Gains (Section 14 - Heads of Income) is placed in Chapter IV Computation of Total Income.

Section 74 - Losses under the head "Capital Gains" is placed in Chapter VI - Aggregation of Income and Set off of Loss is placed in Chapter VI.

You can compute the total income on aggregation of income and set of f of losses if any item of income falls under chapter IV.

The income specified u/s 10(38) is not an income which shall form part of total income.  It is out of purview of total income. 

Hence the exempted income u/s 10(38) cannot be set off of against a taxable item of income (Capital Gains)

Best Wishes

Sathikonda

Mr.Mukesh Jain

Section 10(38) of Income-tax Act, 1961 is placed in Chapter III - Incomees which do not form part of total income.

Income from Capital Gains (Section 14 - Heads of Income) is placed in Chapter IV Computation of Total Income.

Section 74 - Losses under the head "Capital Gains" is placed in Chapter VI - Aggregation of Income and Set off of Loss is placed in Chapter VI.

You can compute the total income on aggregation of income and set of f of losses if any item of income falls under chapter IV.

The income specified u/s 10(38) is not an income which shall form part of total income.  It is out of purview of total income. 

Hence the exempted income u/s 10(38) cannot be set off of against a taxable item of income (Capital Gains)

Best Wishes

Sathikonda