Long term capital loss set off

Shruti,

Good Question.

Basically the logic is, the LT Gains are taxable at 10/20% whereas, ST gains from other than STT paid shares, is taxable at the normal slab rates.

now, say your slab is 30% and you set off the LCG chargeable at 20%, then you will be at a loss

or, if say you are in the 10% slab and you setoff this the LTCG (20%) against income chargable at 10%, the govt will be at a loss.

hence, the set off provisions, allow the set off to be against incomes falling in the same taxability slabs.

Hai Sruthi...congrats on your first post

Thank you Ankit sir :)

you are welcome...hope it was clear...

CAN LONG TERM CAPITAL LOSS BE ADJUST FROM SHORT TERM CAPITAL GAIN???