Dear Members,
One of my friend sold 4500 shares of listed Comapny at loss of Rs 1250 and he also sold 6500 shares of unlisted Company at gain of Rs 3000 . My question is whethre he can set off long term capital loss of Rs 1250 with long term capital gain of Rs 3000,
Thanks & Regards.
Dipak Singh
yes, why not. It is a inter-source adjustement.
only the LTCL cant be adjusted against STCG, even if it is inter-source.
Hello Dipak,
As per Section 10 (38) of the IT Act, LTCG on Transfer of Euqity shares on which STT is paid are exempt, the loss incurred by your friend is on the shares of the listed company so it is deemed that STT has been paid. The Provisions also says that if there is any loss on such transaction then it cannot be set off agaist any income.
Thus the loss incurred by your friend cannot be set off against the gain on the sale of shares of the unlisted co.
Other views solicited
LTCL AGAINST LTCG ...........
Dear Ravi & Maheshkumar ,
I would like to clear it more that listed Company Shares were sold off line i.e they were sold on Physical Shares basis due to inter family settlement , so there is No STT is Paid.
Thanks & Regards.
Dipak Singh
Thank you Dipak for this further clarification.
Then this loss can be set off.......
Other Views solicited
CAclubindia
