Hi, due to trading in shares, I have incurred short term gains. So can that be adjusted with a loss in short term share trading? If yes, if I book losses today, can I re-buy the shares again after 3days?
Note: I also have a long term loss from share trading as well.
Let me rephrase my question. Can I reduce my short term gain tax by incuring short term loss? If yes, then after how many days can I re-purchase the sold shares?
Okay so after how many days can I re-purchase the sold shares?
I want to know which value of shares to be taken is it book value i.e. the amount of purchase or the market value for closing value ?
Let me rephrase the answer for you. Short Term Capital Losses can be adjusted with Short Term Capital Gains. Now in your case the first transaction is over. After 3 days you may enter into a new transaction. The Capital gains arising there is separate. That can be adjusted with Short Term Capital gains/Losses if (1) The transaction is short term in nature, (2) There exist STCG/STCL balance after adjustment.
Secondly, Long Term Capital Gains is exempt u/s 10(38). You cannot set-off the long term losses with Short Term or carry forward it nor adjust it with Other Long term Capital Gains arising in other Assets..
Hope that solves your query.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
View Details
CAclubindia
