Long term capital gain

Page no : 2

Studentsca (CA Practice ) (3577 Points)
Replied 12 May 2017

@ Dhiraj Sir, Suppose if no LTCG of Rs. 8,000/- was made and only LTCl of Rs. 4,000/- was incurred in this case then would be the tax treatment??

Malhar Deshpande (211 Points)
Replied 12 May 2017

Thanks a lot all of you.

Malhar Deshpande (211 Points)
Replied 12 May 2017

there is no income so no tax. For loss no treatment, problem is that it remains in mind for long time.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 13 May 2017

@ Studentsca: Dear, loss or gains in this case has no impact for taxation. Net gains (as per books of accts.) of the year is declared under EI, for intimation to department (so that any unnecessary query may not arise). While nett loss is not declared (as department is least bothered in it). It cannot be adjusted for this year nor be carried forward for future adjustment also; so just written off in capital accounts!! Hope, clarified your doubt. Good luck.

Studentsca (CA Practice ) (3577 Points)
Replied 13 May 2017

I was under the impression that since Net Loss incurred in such cases cannot be adjusted or carried forward, it cannot be set off against exempted LTCG. Now I have understood the concept. Thank you for the clarification.

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 13 May 2017

As far as department is concerned, it hardly matters how you have reported, unless you have tried to manipulate tax. Many such things are not noticed, and are handled differently by different professionals till date. But now CPC works digitally, and as such results....... so many defective returns u/s. 139(9) !!!!!!!!!!!

So, chill ...........