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Short Term Capital Gain

Chinmay (Accounts Professional) (356 Points)

06 March 2011

If I Purchase 2 Shares @ Rs.50/- each & sell @ Rs. 75/- & Rs. 45/- so what is my tax liability?

The profit of STCG can set off aginst loss from similer income?

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11 Replies

Sunshine (Helping All) (10575 Points)
Replied 06 March 2011

yes the profit from STCg can be adjusted with other STCG loss but not LTCG loss...

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 06 March 2011

75-50= 25 STCG

45-50= -5 STCL

net STCG = 25-5 = 20

STCL can be adjusted against STCG

1 Like

Tehsinkhan Pathan (CA CMA DISA(ICAI) B.COM) (3956 Points)
Replied 06 March 2011

Originally posted by : U S Sharma
	75-50= 25 STCG 45-50= -5 STCL net STCG = 25-5 = 20 STCL can be adjusted against STCG

vijay (Accountant) (884 Points)
Replied 07 March 2011

Originally posted by : U S Sharma
	75-50= 25 STCG 45-50= -5 STCL net STCG = 25-5 = 20 STCL can be adjusted against STCG

sachin sharma (article) (122 Points)
Replied 07 March 2011

hi chinmay

75-50= 25 STCG

45-50= -5 STCL

net STCG = 25-5 = 20

STCL can be adjusted against STCG

mr us sharma is right on his point

Bhav Bhuti Sharma (Towards Professionalism ) (823 Points)
Replied 07 March 2011

Originally posted by : U S Sharma
	75-50= 25 STCG 45-50= -5 STCL net STCG = 25-5 = 20 STCL can be adjusted against STCG

agree

Priya . (CA -PCC) (131 Points)
Replied 07 March 2011

can be set off against LTCG TOO.(BOTH long term & Short term capital gain)

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 07 March 2011

Originally posted by : Priya .
	can be set off against LTCG TOO.(BOTH long term & Short term capital gain)

as ltcg is zero rated u/s 10 (38) it would be only book entry , no real benefit for adjustment.

M. N. JHA (CA) (8316 Points)
Replied 07 March 2011

Originally posted by : U S Sharma
	75-50= 25 STCG 45-50= -5 STCL net STCG = 25-5 = 20 STCL can be adjusted against STCG

Chinmay (Accounts Professional) (356 Points)
Replied 23 March 2011

Thanks everyone but there is one more query.......

Can I carry forword thos Rs.20/- loss upto 8 years as per u/s 72......

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 23 March 2011

Originally posted by : Chinmay
	Thanks everyone but there is one more query....... Can I carry forword thos Rs.20/- loss upto 8 years as per u/s 72......

if u have no STCG in the year to adjust the STCL then u can carry forward, and adjust the same when STCG available for adjustment, but if STCG is available then u can not carry forward.