I have sold a property and there is a STCG of Rs. 15.00 lakhs. In the same year I am having business loss and short term capital loss on shares. Can the same be adjusted????
Please clarify.
I have sold a property and there is a STCG of Rs. 15.00 lakhs. In the same year I am having business loss and short term capital loss on shares. Can the same be adjusted????
Please clarify.
| Originally posted by : Vishhal K Bhartia | ||
 |
I have sold a property and there is a STCG of Rs. 15.00 lakhs. In the same year I am having business loss and short term capital loss on shares. Can the same be adjusted???? Please clarify. |
 |
as far as i can recall, as per sec. 72, business loss cannot be set-off against STCG, it must be carried forward until it can be set-off against business profits if any. and STCL from shares can be set-off against STCG.
| Originally posted by : rajiv | ||
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Originally posted by : Vishhal K Bhartia I have sold a property and there is a STCG of Rs. 15.00 lakhs. In the same year I am having business loss and short term capital loss on shares. Can the same be adjusted???? Please clarify. as far as i can recall, as per sec. 72, business loss cannot be set-off against STCG, it must be carried forward until it can be set-off against business profits if any. and STCL from shares can be set-off against STCG. |
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I am having short term capital loss on sale of shares of Rs. 10.00 lakhs. SO as per your reply I can adjust STCG on Sale of property of Rs. 15.00 lakhs from STCL on Sale of shares of Rs. 10.00 lakhs. So Net STCG will be Rs. 5.00 lakhs.?????
yes vishal..it can be adjusted as you write..
No, STCG cannot be set off with business loss. STCG can be adjusted with STCL.
1.Business loss can be set-off against any capital gain. and also any other source of income(except salary)....but capital loss(ST/LT) cannot be set off against any source of income ...
2. ST capital loss can be set off against aST/L:T cap mgain but LT cap loss can be set off only against LT cap gain
Agree with Saurabh ji,
Short term Capital gain can be set off against Short term gain on sale of Property in your case.
|
Sr. No. |
Section |
Types of Loss |
Set Off against Income |
Can be carried forward (subject to Notes 4 and 8) for |
|
|
|
|
|
In same Assessment Year |
In subsequent Assessment Year |
|
|
1 |
71/72 |
Business or Profession (other than speculation or depreciation) |
Any income under any head except Salaries |
Business Income only |
8 years |
|
2 |
32(2) |
Unabsorbed Depreciation |
Any income under any head except Salaries |
Any income under any head except Salaries |
No restriction for of years number |
|
3 |
73 |
Speculation Loss |
Speculation profit only |
Speculation profit only |
4 years [8 years up to A.Y. 2005-06] |
|
4 |
70/74 |
Short-term Capital Loss r.w.s. 94(7) in respect units of mutual funds or UTI/ securities & 94(8) in respect units of mutual funds or UTI (Notes 7 & 8) |
Any Capital Gain |
Any Capital Gain |
8 years |
|
5 |
70/74 |
Long-term Capital Loss |
Long-term Capital Gain |
Long-term Capital Gain |
8 years |
|
6 |
71/74 |
Long-term Capital Loss on equity shares & units of equity oriented mutual fund which are subjected to STT |
Not eligible for set off |
Not eligible for set off |
N.A. |
| Originally posted by : Vishhal K Bhartia | ||
|
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Originally posted by : rajiv Originally posted by : Vishhal K Bhartia I have sold a property and there is a STCG of Rs. 15.00 lakhs. In the same year I am having business loss and short term capital loss on shares. Can the same be adjusted???? Please clarify. as far as i can recall, as per sec. 72, business loss cannot be set-off against STCG, it must be carried forward until it can be set-off against business profits if any. and STCL from shares can be set-off against STCG. I am having short term capital loss on sale of shares of Rs. 10.00 lakhs. SO as per your reply I can adjust STCG on Sale of property of Rs. 15.00 lakhs from STCL on Sale of shares of Rs. 10.00 lakhs. So Net STCG will be Rs. 5.00 lakhs.????? |
|
yes. that is exactly what i meant.
Dear Rajiv,
You need to correct your learnings on set-offs.
In this case, the assessee can set-off both the business loss and short term capital loss from shares against the short term capital gains from sale of property.
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