Hi, I have sold stock (say X) where I was incurring LTCL (I was holding this stock for last 8 years). Today I sold this stock using my icicidirect demat account and booked LTCL also today only I have purchased back the same quantity of stock X from different demat account Zerodha. So my query is that shall I be able to claim LTCL for next 8 years and offset it against LTCG which may happen in future years. Does wash-sale rule applies here where transaction is across different demat accounts (but with same PAN number). Thanks & Regards Vineet Gautam
Hi Vineet,
Yes, all your transaction through various delay account linked to one PAN is considered together.
Although, prima facie there is no issue in claiming loss. However, sinve you have bought back to stock same day, if tax officer catches this fact, he may try to deny your claim.
However, there is no explicit provision in the law to deny your claim.
Thanks Lakshita, One follow-up query, so I can carry forward LTCL for all previous 8 years (for stock-X) or will this be only applicable from Jan'2018 (Time when govt. introduced LTCG of 10% and thereby enabling LTCL to carry forward as well). Thanks & Regards Vineet Gautam
You can carry forward the losses of stocks sold after 31.3.18.
Example,
1. Original purchase price = 10000
FMV as on 31.1.18 = 5000
Sale price 2019 = 4000
LTCL = 6000
2. Original purchase price = 10000
FMV as on 31.1.18 = 15000
Sale price 2019 = 4000
LTCL = 6000
Hi Vineet,
Hope you are doing well !!
Yes, you will be able to claim LTCL for next 8 years and offset it against LTCG which may happen in future years
Yes, you can carry forward LTCL for all previous 8 years.
Logically it should be from Jan.2018.
Hi
As per my view,Carry forward provisions applicable from Jan 18 only.
Hope it helps
