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LONG TERM CAPITAL GAIN AND LOSS

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Charu Awalkar

5 Points Posted on 03 September 2021

if in the given AY if both LTCG and LTCL both are there ,is it necessary to set off LTCG AGAINST LTCL although LTCG is less than Rs 100000/- ?

please confirm

regards

Replies (3)

Quick Summary

This discussion clarifies the mandatory rules for setting off Long Term Capital Losses (LTCL) against Long Term Capital Gains (LTCG) in a given Assessment Year. It confirms that LTCL must be set off against LTCG, regardless of whether the LTCG is less than £100,000. This is in line with set-off provisions and tax regulations, including Section 112A which applies to long-term capital gains after April 2018.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212482 Points Posted on 03 September 2021

Yes, it is mandatory; and the software is designed as per the rule...

v devanathan

Partner of a CA Firm

132 Points Posted on 03 September 2021

Yes, As per set-off provision u/s. 70(3), LTCL for a year shall be set off against LTCG for that year, even if the LTCG fig is less than 1lakh. Because, LTCG per se is taxable but for tax liability, the threshold of Rs.1 Lakh is allowed u/s. 112AA.