Long Term Capital Loss (Shares); how to show in ITR 2?

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  1. Ashok Patnaik

    Ashok Patnaik New Member

    I happened to see the article, “LTCL from Shares on which STT paid: Set Off allowed”, written by Mr. Jai Kishan.

    My understanding is that the offset of LTCL is allowable against LTCG from other assets (other than shares). In that case the LTCL is to be shown in ITR for setting off in current as well as subsequent years.

    Are the following legally right

    (1) If the amount of LTCL from sale of shares is entered in respective columns of serial number B-7-a, B-7-b-i, b-ii and b-iii of “Schedule CG: Capital Gains” in ITR 2? and

    (2) If the amount of STCG from sale of shares intraday (Speculative Gain) is entered in respective columns of serial number A-5-a,A-5-b-i, b-ii and b-iii of “Schedule CG: Capital Gains” in ITR 2?

    I have STCG (Intraday/Speculative), STCL and LTCL this year for the first time. When I entered data as stated above, the amount shown in “Schedule CFL” is as given below.

    (a) The amount of STCL is reduced to the extent of STCG (Intraday/Speculative) and is shown at serial number, xi (xxxx xxxx current year losses) against column, Short-term capital loss.; and

    (b) The amount of LTCL is shown at serial number, xi (xxxx xxxx current year losses) against column, “Long-term capital loss”

    I request to kindly clarify if my approach to this issue is right or wrong.
     
  2. Naveen Chand

    Naveen Chand Member

    NO ALLOWED .... AS IF LTCG FROM SHARES WITH STT PAID IS EXEMPTED SO NO ADJUSTMENT WLL BE ALLOWED WITH LTCL FROM SHARES
     
  3. Ashok Patnaik

    Ashok Patnaik New Member

  4. ZED

    ZED Well-Known Member

    I would not recommend to off set the losses from exempted income. It is a trite law that if the income from a source is exempt then the loss therefrom can also not be allowed to be carried forward.
    Also note that the judgement is of ITAT.
    I respect ITAT but I can not say the same for this judgement.

    If you wish to proceed on the basis of that judgement, then proceed at your own risk.
     
  5. Ashok Patnaik

    Ashok Patnaik New Member

    Thank you very much for your advice.
     
    ZED likes this.
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