Set off Short Term Capital Loss with Interest on FD?

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  1. D K Pathak

    D K Pathak New Member

    (1) Can we offset short term capitol losses from equities with income from interest on saving/fixed deposit/capital gain accounts ?
    (2) Can we book a flat under construction and pay in stages from capital gain account up to 3 years ?

    D K Pathak
  2. Neha Sharma

    Neha Sharma Active Member

    Dear @D K Pathak

    1. Short Term Capital Loss can only be set-off against Capital Gains and not from any other head. You cannot set-off this loss against Interest Income.

    2. If you have booked a flat and are paying the amount deposited in Capital Gains Account Scheme, you would be allowed deduction. In case of purchase, of property, the time allowed is 1 year before or 2 years after the sale of property.
  3. D K Pathak

    D K Pathak New Member

    Thanks for your response. In fact the same is allowed in US.

    For No (2): I sold aproperty on 14th Feb 2013. I opened Capital gain account on 30th July 2013. I want to book a flat now which will be completed in the Aug 2016. Can I hold this account till then ?

  4. Neha Sharma

    Neha Sharma Active Member

    Some people of the opinion that purchasing a property is what the act requires and not making the payment... So they are of the opinion, that if you purchase a residential property - you would be allowed a deduction irrespective of when the payment is made...

    To be on the safer side, I would advise you to pay the amount (within 2 years if possible) and claim income tax exemption...

    When you have the money, you can pay within 2 years and be on the safer side... Moreover, the developer may give you some discount as well for early payment...
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