Short Term Capital Gain

U r supposed to pay advance tax on ur transaction. It is advisable that u pay the required tax as soon as u settle the transaction and not wait until March for payment of tax so as to avoid interest u/s 234 B and 234 C

U can use the short term capital loss on shares to set-off against short term capital gain. But long term capital loss has to be set off against loss term capital gain only and no other head. Therefore u cannot get the benefit of set-off of long term capital loss of Rs.60K in ur current transaction

1- no 2-yes

You should have to fistly deposit advance tax as per rules on arose of capital gain.

Short Term Capital Loss can be set off against any income under the head Capital Gains but Long Term Capital Loss can be set off only against long Term Capital Gain in Future Years. So Benifit of Rs.60000 can not awail from Short Term Capital Gains.

I am planning to sell a plot which i bought 3 years back. so i will have some long term capital gains. ( A )

I have some short term capital loss ( < 1 yr in equity mutual fund ) - ( B )

and long term capital loss ( > 1 yr in equity mutual fund). - ( C )

Questions:

1. can i offset my both STC Loss and LTC Loss  from equity market with my LTCG from plot sale.

2. If yes then do i need to pay capital gains now on my actual profit i.e  (A - B - C). And what rate i should pay the tax. 20% with indexation or 10 % flat.

hi, Speculation loss can be set off against only speculation gain. Hence u cannot set off STCL arising from sale of shares (speculation with sale of plot(non speculation).

LTCG @ 20% will be applicable to u.

However, exemption u/s 54 EC & 54 F can be availed by u.

thanks Vinay,

can you also tell me if this is possible.

long term capital gains from equity > 1 yr  ( A )

short term capital loss ( < 1 yr in equity mutual fund ) - ( B )

long  term capital loss ( > 1 yr in equity mutual fund). - ( C )

Q: What ARE possible options ?

1.  A - B - C

2. A - B

3. carry forward B + C losses to next year

One more question:

I also have short term capital gain from sale of foreign held equity - D.

Can i do this:

1.  A  + D - B - C

2. A + D - B

3. carry forward B + C losses to next year

Thanks in advance.

STCL can be set off against Any Capital Gains and LTCL can be set off against LTCG. Therefor, A-B-C is possible. However it must be kept in mind that where net result under the head capital gain is a loss such capital loss cannot be set off against any othet income head and has to be carry forward.

In case of second part if there is DTAA with that country then it shall not be taxable in India. Otherwise option 1 is ok.