Friends,
Wanted to updated how long term capital loss can be adjusted for an individual assessee. Also can short term capital loss be adjusted against income from other sources and/or income from profession.
Regards,
Dipjyoti
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Long term capital loss
Replies (4)
Dear Dipjyoti,
Short term capital loss can be set off against any capital gain ( whether STCG or
LTCG ) in the same year and subsequent assessment year and Long term capital gain can be set off only against LTCG in the same year, the same cannot be set off against any other head of income i.e., Salaries, House Property, Business or Profession or other sources.
Both short term and long term Capital loss computed in an assessment year can be carried forward for eight assessment years and set off as above.
Regards,
CA Anu Bansal
Agreed with Anu ji..................
Section 74 provides that where for any assessment year, the net result under the head ‘Capital gains’ is short term capital loss or long term capital loss, the loss shall be carried forward to the following assessment year to be set off in the following manner:
(i) Where the loss so carried forward is a short term capital loss, it shall be set off against any capital gains, short term or long term, arising in that year.
(ii) Where the loss so carried forward is a long term capital loss, it shall be set off only against long term capital gain arising in that year.
(iii) Net loss under the head capital gains cannot be set off against income under any other head.
(iv) Any unabsorbed loss shall be carried forward to the following assessment year up to a maximum of 8 assessment years immediately succeeding the assessment year for which the loss was first computed.
Thanks to All of You.
Can you advise how to capture STCL in relevant page of ITR 4. If there is both STCG and STCL, should the net figure be reported in the relevant page of tax return.
Also is STCG taxed at 15.45%.
Regards,
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