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Long term capital loss in shares

HEMANT (PROPRIETER) (40 Points)

10 June 2018

DEAR MEMBERS

I HAVE INCURRED LONG TERM CAPITAL LOSS ON SALE OF SHARES DURING THE FY 2017-2018.

PLEASE GUIDE ME HOW TO SHOW THE ABOVE IN MY ITR2 SINCE THE LTCL CANNOT BE C/F AND ADJUSTED.

THANKS & REGARDS

HEMANT

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16 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 10 June 2018

LTCL on shares where STT paid.........No need to declare in ITR2.

Vaishali Jain (Currently working on improving my skills and capabilities) (2539 Points)
Replied 10 June 2018

Respect Dhirajlal Rambhia Sir,
can you please clarify why the LTCL is not required to declare in ITR 2?
And it can also be carry forward for 8 AY's

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 10 June 2018

Till AY 2018-19, LTCG over an equity share of a company or a unit of an equity oriented fund or a unit of a business trust.... are exempt u/s. 10(38) of IT act. Similarly Long Term Capital Loss on Shares and Equity Funds is a dead loss and therefore it cannot be set off or carried forward.

Sunil Ahmad (Student) (1511 Points)
Replied 10 June 2018

if STT paid then Loss from an exempt source cannot be set off or carried forward.

Vaishali Jain (Currently working on improving my skills and capabilities) (2539 Points)
Replied 10 June 2018

Thankyou sir, agree with you
but one more clarification is required
Is there any specific reason behind not declaring LTCL on equity shares in ITR 2?

HEMANT (PROPRIETER) (40 Points)
Replied 10 June 2018

If there is no need to declare LTCL in the ITR 2 then what if the IT scrutiny comes due to no turnover shown in the ITR2 whose information reaches them via AIR by the broker?

HEMANT (PROPRIETER) (40 Points)
Replied 10 June 2018

If there is no need to declare LTCL in the ITR 2 then what if the IT scrutiny comes due to no turnover shown in the ITR2 whose information reaches them via AIR by the broker?

Vaishali Jain (Currently working on improving my skills and capabilities) (2539 Points)
Replied 10 June 2018

Exactly my point of view is same
the LTCL is not allowed to be carried forward this is right but not declaring the same in ITR 2 is as equivalent to escaping actual information in return which may give a chance of of scrutiny notice

HEMANT (PROPRIETER) (40 Points)
Replied 10 June 2018

But I have also tried to fill ITR2 giving details of the purchase and sales of the LTCL but the Loss figure is automatically C/F ...

Vaishali Jain (Currently working on improving my skills and capabilities) (2539 Points)
Replied 10 June 2018

Sir, you need to select the option of Stt paid on shares afterwards the same will not be shown carried forward

HEMANT (PROPRIETER) (40 Points)
Replied 10 June 2018

Please can u mention the Serial No of the ITR2

Vaishali Jain (Currently working on improving my skills and capabilities) (2539 Points)
Replied 10 June 2018

Sir, you need to select the option of STT paid on shares afterwards the LTCL will be shown carried forward

HEMANT (PROPRIETER) (40 Points)
Replied 10 June 2018

I found no such option in ITR2....

Vaishali Jain (Currently working on improving my skills and capabilities) (2539 Points)
Replied 10 June 2018

Sir, I have checked out that no such option is provided in ITR utility 2 in respect of LTCL so it is advisable not to show your LTCL in your return as there is no option to select stt paid on shares that restrict to carry forward the loss