Long Term Capital Gain set off

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k
65 Points Posted on 19 February 2021

Hello,

I want to know if Long term Capital Gain can be set off against first Long Term Capital Loss and thereafter, if gain still remains, with Short Term Capital Loss?

Regards

Rajiv

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On 19 February 2021 at 15:50 Report
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Quick Summary
This discussion clarifies how to set off Long Term Capital Gains (LTCG) against capital losses. Generally, LTCG can be offset against Long Term Capital Loss (LTCL) first. If a gain still remains, it can then be offset against Short Term Capital Loss (STCL). However, Short Term Capital Loss cannot be offset against Long Term Capital Gain and must be carried forward.

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Consultant
135 Points Posted on 19 February 2021

Hi Rajiv,

First you should go for Intra Head adjustments, in case of excess amount you can offset the same with inter-head also. incase there is no LTC Loss then you offset the LTCG with STC Loss.

Amit.

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On 19 February 2021 at 17:06
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GST Practitioner & Accounts
15140 Points Posted on 19 February 2021

please  refer  section 74(1) (b)  of the Income Tax act 1961  , One can not  set  off  Short  term capital  loss  against  Long term capital gain , In think in any  case . 

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On 19 February 2021 at 17:09
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17269 Points Posted on 19 February 2021
Short term capital loss will have to be carry forward. it can not be set off against LTCG
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On 19 February 2021 at 19:16
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Accountant
4533 Points Posted on 20 February 2021
Hello,

STCL can be set off against LTCG
but LTCL can't be set off against STCG.
7 Reply
On 20 February 2021 at 13:25
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721 Points Posted on 20 February 2021
Yes Krishna is right.

restriction is only for LTCL, StCL can be set off either against STCG or LTCG
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On 20 February 2021 at 20:14
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Accountant
4533 Points Posted on 20 February 2021
Thanku brother
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On 20 February 2021 at 20:41

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