Stock trading - stcl/ltcl - split-up for periods

ITR 614 views 4 replies

Harsha

Software professional

214 Points Joined May 2011

Dear Experts,

This years, I had losses (both short and long term) from stock trading. I would like to file my return (ITR-2) to carry forward my STCL though my total income is less than the minimum.

Does it make any sense to show my LTCL under section CG-B-3 (From sale of listed securities or units or zero coupon bonds where proviso under section 112(1) is applicable) ? I believe that LTCG from shares, is completely free from any tax and so LTCL from shares, can't be set-off or carried-forward.

Also for both STCL & LTCL, is it mandatory to show the "Information about accrual/receipt of capital gain" under CG? It gives the period split-ups like upto 15/9, 15/12 etc. For me some periods had gains (even under STCG), though the total is negative. I tried filling -ve alues (losses), it warned me that I can enter only 'non-negative, non-decimal, upto 14 digits'.

Regards,

Harsha Vardhana R

Replies (4)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

LTCL can be carries forward and set-off against LTCG only.

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

mention only total loss or gain, no need to give split ups.

Niral Gangar

Management Consulting Investment Adviso

100 Points Joined February 2008

Dear Harsha,

Your understanding is correct. LTCL from shares cannot be carried forward (as gain is also exempt) and you do not need to show it in ITR. For STCL only if there is gain break-up is mandatory. the break-up is for calculation of interest u/s 234C. In case of loss there is no question of tax & interest & hence break-up is not mandatory. You can file return to claim STCL though your total income is less than minimum