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Short term capital loss

Satyendra sahu (service) (216 Points)

07 November 2008

Hi dears,

Can any one tell, can we adjust our current year short term capital loss with our salary income during the year?

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15 Replies

Juzer Sadikot (CA - innovative solutions for Imports and Exports) (1309 Points)
Replied 07 November 2008

No,

refer Section 71(3) of Income Tax Act, 1961

Pradeep.R (Chartered Accountant) (20 Points)
Replied 07 November 2008

Hi Satyendra,

Short term capital loss will be adjusted only against short term capital gain or long term capital gain. It cannot be adjust to any other heads.

Juzer Sadikot (CA - innovative solutions for Imports and Exports) (1309 Points)
Replied 07 November 2008

I would like to rectify small mistake of Mr. Pradeep,

Short term capital loss will be adjusted against short term capital gain

and/or

long term capital gain of same year.

It cannot be adjust to any other heads.

CA Vivek Jain (SERVICE) (1550 Points)
Replied 03 January 2009

Hi dears,

Can any one tell, can we adjust our current year short term capital loss on listed share against long term capital gain on unlisted share?

CA. Ashok shah (CHARTERED ACCOUNTANT) (333 Points)
Replied 03 January 2009

Short Term Capital loss can not be set-off against salary income for the year. It can only be set-off against any capital gain i.e. Long-Term or Short Term for the year.

Thus,Short-Term capital loss of listed securities can be set-off against Long-term Gain in unlisted securities. However, Long-Term capital loss can not be set-off against Short Term Capital Gain. It can only be set-off against Long term capital gain only. (Refer Sec 70 & 71)

Thanks,

CA. Ashok Shah

CA Vivek Jain (SERVICE) (1550 Points)
Replied 03 January 2009

Dear Sir,

Derivative loss on shares can be set off against Capital gain on shares

CA. Ashok shah (CHARTERED ACCOUNTANT) (333 Points)
Replied 08 January 2009

Derivative loss is either Short-Term capital loss or Business loss depending upon nature of your activity i.e. investing activity or business activity. If it is out of your investing activity, derivative loss is a short term capital loss and it can be set-off against short term capital gain in shares

HARSHIT KABRA (STUDENT) (81 Points)
Replied 08 January 2009

The opinion given by CA Ashokji is correct.

Sulay Shah (Article Assistant) (54 Points)
Replied 12 January 2009

Short term capital loss will be adjusted only against short term capital gain or long term capital gain. It cannot be adjusted against any other head.

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 12 January 2009

STCL can be adjusted against income under head capital gains only. Further Business loss cannot be set off against salary

Atul Kumar (CA) (504 Points)
Replied 12 January 2009

Ashok has answered all queries in his single reply.

Deepa (Member of Audit) (22 Points)
Replied 16 February 2009

Originally posted by :CA CS Prakash Somani (A helping Hand)*
"	STCL can be adjusted against income under head capital gains only. Further Business loss cannot be set off against salary	"

Bharat Jivani (Business) (22 Points)
Replied 28 June 2009

I have incurred a short term capital loss on sale of Listed Shares (STT Paid) in F Y 2008-09. Can I adjust / set off this loss STCL against Long Term Capital Gain on sale of Property in the same F.Y. 2008-09