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

Varun (Proprietor) (89 Points)

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.

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5 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 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) (13112 Points)
Replied 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.