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LOSSES FROM SALE OF EQUITY SHARES OFFSET AGAINST SALE OF HOUSE PROPERTY

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Varun

Proprietor

64 Points Posted on 10 April 2021

Hello All,

Greetings !!

Please reply on below.

Q1. Can we offset Losses from sale of shares against Capital Gain from sale of House property ?

Q2. If Yes, then what is the treatment for LONG TERM / SHORT TERM.

Sr No	Type of Loss	Can we offset against below ?
1	SHORT TERM capital losses from sale of Equity shares	LONG TERM GAINS from sale of house property
2	LONG TERM capital losses from sale of Equity shares	LONG TERM GAINS from sale of house property

Please help.

Replies (5)

Quick Summary

This discussion clarifies whether losses incurred from selling equity shares can be offset against capital gains from selling a house property. The consensus is that yes, you can offset both short-term and long-term capital losses from shares against long-term capital gains from property. However, specific rules apply regarding the 'term' of the assets involved.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 10 April 2021

1) Yes you can set off loss from shares against LTCG.

2) under sl no 1 you can set off STCL against LTCG.
Under sl no 2 you can also set off LTCL against LTCG

CMA Poornima Madhava

CMA

9106 Points Posted on 10 April 2021

You may set off such losses only if the assets are short term capital assets. In other words, long term capital loss can only be set off against long term capital gain.