LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Short term capital loss

09 July 2013

Sir,

whether Short term Capital Loss (STT Paid) can be carried forward and set off against short term capital gain in subsequent years.

Pls reply soon

Reply
Follow
Share

5 Replies

Akshata (CA Final ) (324 Points)
Replied 09 July 2013

yes for 8 subsequent AYs.

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 09 July 2013

Yes,short term capital loss can be carried forward and set off against short term capital gain and long term capital gain for a period of 8 subsequent years

work is worship (Service) (2728 Points)
Replied 20 July 2013

Yes Short term capital loss can be set off only against Capital gains.. both short term and long term.

It can be carried forward for a period of 8 years..

kallu (Software Engineer) (113 Points)
Replied 22 July 2013

Originally posted by : Shivish Verma
	Sir, whether Short term Capital Loss (STT Paid) can be carried forward and set off against short term capital gain in subsequent years. Pls reply soon

I had a followup question. My understanding is that there are 2 types of STCG

1. where STT (securities transaction tax) has been paid (e.g. sale from equities)

2. where STT has not been paid.(e.g. sale from debt mutual fund)

Is it correct to say that loss from category 1 can be set off only against gain from category 1 or can it set off against gains in category 2 too? And vice versa?

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 22 July 2013

(in case of companies)

well i too have same doubt,because the reason for being Long term capital loss can not be set off against short term capital gain is just because the IT department never want to loose 10% tax (30%-20%) on capital gains.as Tax on long term capital gain is 20% and short term capital gain is 30%

so as Tax on short term capital gain on which STT paid is 15%,why will IT department bear loss of 15% by allowing short term capital loss on which STT paid against short term capital gain which is taxable at 30% incase of companies

plead an early reply