• Capital gain

Is there any way to adjust long term capital loss with short term capital gain of same year? While section 70(3) restricts such adjustment, but is there any escape route? Any supporting case law may be shared.
Asked 3 years ago in Income Tax from delhi, Delhi
Loss under the head Capital Gains (LTCL or STCL) cannot be set-off against any other head. (Interpretation: Loss from other heads can be set-off against Capital Gains) 

However, Carry forward of losses (other than loss from house property and unabsorbed depreciation) is permissible if the return of income for the year, in which loss is incurred, is filed in time.
Shiv Kumar Agarwal
CA, Delhi
258 Answers
58 Consultations

5.0 on 5.0

Hi,
Long term capital loss can only be set off against Long term capital gain.So it can not be set off against Short term capital gain.
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

You are absolutely correct, that long term capital loss, can be set off against long term capital gains only and nothing else. Case law will have to wait for some time, immediately and this is only current year income I presume.
Vijay N. Kale
CA, Hyderabad
248 Answers
12 Consultations

4.9 on 5.0

Long term Capital Loss can only be carry forwarded to next year. It can't be adjusted with current STCG.
No other remedy is available as such.
Shiv Kumar Agarwal
CA, Delhi
258 Answers
58 Consultations

5.0 on 5.0

Section 70 (1) discuss about the set off of the loss within the same head of Income  as discuss in section 14 , except under the head of "Capital gain" . section 70(2) and section 70(3) is for the short term capital loss and long term  capital loss under the head Capital Gain .
As per section 70(3) , a long term capital loss has to be set off from a long term capital gain only .
Prakash Sinha
CA, New Delhi Area, India
120 Answers
16 Consultations

4.9 on 5.0

Yes, long term capital loss can not be set off against short term capital gain in any way.
Monil Shah
CA, Ahmedabad
4 Answers

5.0 on 5.0

Long term capital losses can be adjusted against long term capital gains only u/s 70(3). As long term capital gains are taxed at concessional rates, the losses cannot be set off against incomes, which are taxed at normal rates. Hence,the answer to your question seems to be NO.

 
B Vijaya Kumar
CA, Hyderabad
845 Answers
48 Consultations

5.0 on 5.0

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