Whether ST Capital loss can be set-off

Tax queries 680 views 2 replies

NIKIT SHETH

Chartered Accountant

55 Points Joined September 2009

Short Term Capital Loss of Previous year i.e.A.y 2009-10 carried forward to current year. Loss return of last year was filed within due date. return of A.y. 2010-11 is to be filed now i.e. belated. Can capital loss of A.y 2009-10 be set-off against profit of A.y 2010-11? Also can it be further carried forward to next year for set-off????

Replies (2)

CA Sahil Singla..

Service Tax

3746 Points Joined August 2008

According to provision relating to carry forward of loss..the loss of particular year for wich the return was not filed within due date ,can not be carried forward. But in ur case , the thing is different, u hav not filed return within due date of the year ,whom against these losses r to be set off....so there is no problem with this set off..u can go for it...& the same can be carried forward for 8 years

NARAYAN

Ca final

40 Points Joined October 2008

Hi,

Filing of Return within due date in order to carry forward the loss applies only to current year loss and not for previous year loss.Previous year loss can be set off against the current year income ie Capital gains even though the current year return is filed belatedly.

Regards

Narayan