TDS on Salary Income (What happens to LOSS from Other Source

TDS / TCS 1212 views 5 replies

Jignesh

Service

66 Points Posted on 10 March 2009

Hi friends.

Have a query on calculating Total Tax. Assume my Salary Income is 5 lac and TDS is deducted every month. Also for the year I also made a LOSS by sale of shares say 1 lac.

How is total tax calculated in this case?

a) Is my year income taken as 4 lac or 5 lac

b) Do i get a refund if income is calculated as 4 lac

c) If not what happens to the LOSS i made ?

Please advice

Replies (5)

PiyushAgrawal

Chartered acooutant in practice

575 Points Posted on 10 March 2009

Originally posted by :Jignesh
"	Hi friends. Have a query on calculating Total Tax. Assume my Salary Income is 5 lac and TDS is deducted every month. Also for the year I also made a LOSS by sale of shares say 1 lac. How is total tax calculated in this case? a) Is my year income taken as 4 lac or 5 lac b) Do i get a refund if income is calculated as 4 lac c) If not what happens to the LOSS i made ? Please advice	"

Loss fom sales of share can't setoff against salary Income....

Pemmasani Purushotham

M.B.A C.A.Final

418 Points Posted on 10 March 2009

Hi jignesh,

Your salary inome is 5 lakhs only.

u can not clubbed any loss with salary income except house property.

U r not mentioned whether it is Short term loss or Long term loss,

if it is short term loss u can setoff with the Long term & Short term capital gains

if it is Long term loss u can setoff with the Long term capital gains only.

CA Sakshi

CA Practice

309 Points Posted on 10 March 2009

Mr. Purushottam is correct.

Jignesh

Service

66 Points Posted on 10 March 2009

Hi Purushotham,
Thank you for the reply, Well I have both short term and long term loss..

I understand that it can be carried forward for next financial year. How is that done? I mean do i show it as a short term / long term loss while filing return?

Further what happens next year. Do I show this as a carry forward and then add the next year captial gain income.

Hope i have put my question right? Please advice

M.M.SURANA

Director -Taxation

532 Points Posted on 12 May 2009

Mr. Jinesh

both the Loss : STCL and LTCL r saparate term U hav to show saparately.There is a provision as per sec. 10 (33), 10(38) , 10(36) CG is not chargeable to tax , Coversely, in cases if assets r transfered at a loss, such capital loss is not taken in to consideration. Hence, LTCL on shares can not be c/f.