Stcg taxation for nri

Hi Sachin,

Good question! Here's how it works for an NRI regarding loss from house property and short-term capital gain (STCG) on sale of equity shares:

🔹 Can loss from house property be set off against STCG on sale of equity shares for NRIs?

Short answer:
No, loss from house property cannot be set off against STCG on sale of equity shares.

📝 Detailed Explanation:

• Loss from house property is a loss under the "Income from House Property" head.

• Short-term capital gain (STCG) on sale of equity shares (if sold on a recognized stock exchange with STT paid) is chargeable under Capital Gains head.

• As per Income Tax Act, losses can be set off only against income under the same head or specified heads as per section 71.

Allowed Set-Off Rules:

• Loss from House Property can be set off only against Income from Other Sources or Income from House Property itself.

• Capital Gains (short term or long term) cannot be adjusted with House Property losses.

• Hence, loss from house property cannot be adjusted against STCG from equity shares.

Additional Points for NRIs:

• NRIs are taxed similarly to residents for capital gains.

• STCG on listed shares with STT is taxed at a flat rate of 15%.

• House property loss set-off rules remain the same.

🔹 Summary:

House property loss (under old regime), can be set off against STCG. 

In new regime, there will not be any HP loss.