can ST capital loss be offset against interest income for salaried person for FY 2015-16

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  1. empower70

    empower70 New Member

    For salaried person, his short term capital loss for FY 2015-16 is Rs. 8000. His interest income is rs. 21000. Bank is deducting TDS at 10%. He is in 30% income tax bracket. Can short term capital loss be offset against interest income in India in this case. What will be the income tax in above case and by what date he has to pay additional tax.
  2. ZED

    ZED Well-Known Member

    Short term capital loss can not be off setted with income from other source.
    It can only be used to set off the profit under the head Long term capital gain or Short Term Capital Gain. If there is no such income under the said heads, then such loss should be carried forward.(There is time limit upto which the loss can be carried forward)

    S70. (1) Save as otherwise provided in this Act, where the net result for any assessment year in respect of any source falling under any head of income, other than "Capital gains", is a loss, the assessee shall be entitled to have the amount of such loss set off against his income from any other source under the same head.

    S70(2) Where the result of the computation made for any assessment year under sections 48 to 55 in respect of any short-term capital asset is a loss, the assessee shall be entitled to have the amount of such loss set off against the income, if any, as arrived at under a similar computation made for the assessment year in respect of any other capital asset.

    He should pay the remaining tax on the interest income(+ any other income) within the time limits of S.211 (to avoid interest)
    Installments to be discharged as per the S.211

  3. empower70

    empower70 New Member

    If person has not paid additional tax on interest income; (other than 10% TDS), can he pay tax now. If yes, what form he has to use and is there any additional interest he has to pay for delayed payment.
    Secondly, for FY 2016-17, what form he has to use for paying advance tax for interest income?
  4. ZED

    ZED Well-Known Member

    Challan No. 280

    Provisions of S.234B &/or 234C (in respect of interest) might be applicable.
    It would be calculated by the utility when you'll fill in the details.

    What are your other incomes?
    If only salary , cap gain and interest income then ITR-2 would do just fine.
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