If a following LTCG scenario arises for same set of equity:
i) Non-Indexed LTCG capital gains shows LTCG Profit.
ii) Indexed LTCG shows LTCL Loss.
Which one should be chosen for reporting purpose? Is there a law which says that higher of the two LTCG between Non-Indexed and Indexed, higher amount should be reported in Schedule EI?
Can taxpayer choose to report LTCL loss (i.e.Zero)? Because there is indeed a loss when we look from indexation.
As the LTCG over equity product is exempt u/s. 10(38), generally it is declared without indexation.
As LTCL over equity is dead loss it is not disclosed anywhere.
Can we declare exempt LTCG (MF + listed Equity) with indexation in Schedule EI?
LTCL can be loss in MF also.
1. YES
2. YES ..
Can FY 2017-18 LTCL of equity stock and equity MF which is "dead loss" can we carry forward in ITR2, which can then be setoff against future LTCG?
LTCG from FY 2018-19 is taxable 10% above Rs 1 lakh and indexation is not allowed.
So is CF of such previous year loss allowed?
1. No
2. No
From FY 2018-19, will LTCL be allowed to be carried forward?
From AY 2019-20, LTCL from shares & equity MF will be allowed to be set off with other LTCG, and any unadjusted amount will be allowed to carry forward.
The ITR-2 form doesn't allow to report losses during the quarter. So it could happen that overall I have LTCG and STCG by selling equities but with some quarter in profits and some in losses. The section F under CG, doesn't allow to report negative numbers. For example in Q1 (Upto 15/6) I have a profit of 10000 and between (16/6-15/9) i incurred a loss of 3000. For the subsequent periods there was not trading . How do the loss of 3000 gets reported in the section F? Do i offset it against the gain of 10000 and report a gain of 7000 in Q1 (15/6).
@ Gagan.... Yes, that is the way it should be reported.
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