Setting off ltcg & stcg

Tax queries 169 views 3 replies

Nikhil

Tax payer

23 Points Joined March 2019

We are selling our industry (building & landa) and have following questions:

1. Can we use loss from selling machines and carry forward loss to set off LTCG on land if we make the registry of sell in the same year as which the loss was incurred?

2. Should we hold off from making registry of sell this year and do it next year? Any advantages or disadvantages on doing the registry of sell the year after the year in which the loss on machine sale is incurred?

Replies (3)

Priya Kashyap

Student

7053 Points Joined February 2019

see Nikhil loss from capital gain can be short term and long term depending on the class of asset
In case of long term capital loss it can only be setoff against its long term capital gain only and if not possible can be carried forward for 8 years
In terms of short term capital loss can be setoff intra only.

Nikhil

Tax payer

23 Points Joined March 2019

@ priya - thanks for the quick response. I agree that LTCL can only be set off with LTCG. But I also read that if the business loss happened in the same year in which the LTCG happened it can be used to set off the LTCG. Is my understanding correct?