An easy-to-browse ready reckoner for everyone, with lots of easy tips
TAX TIPS ON EQUITY CAPITAL GAINS AND LOSSES
1. Short-term capital loss can be set off against short-term capital gain AND long-term capital gain.
2. Long-term capital loss can be set off ONLY against long-term capital gain.
3. If long-term and short-term capital losses cannot be set off against the capital gains of that particular year, then they can be SEPARATELY carried forward for the next 8 consecutive years.
4. Losses under the head 'Capital Gains' CANNOT be set off against income under other heads of income, i.e., salary, business & profession, house property, and income from other sources.
5. A few tips:-
a) You may want to wait for a few more days, to move from short term to long term tax treatment, if you're making profit on an equity transaction, for better tax benefits.
b) As long term capital loss cannot be set off against short term capital gain, you will be able to minimize your tax liability if you sell an equity security making huge losses for you within a period of one year.
c) If you have sold equity before March just for reducing your tax liability, you may "reinstate" your portfolio by buying the same entity again after 1st April.
2. Long-term capital loss can be set off ONLY against long-term capital gain.
3. If long-term and short-term capital losses cannot be set off against the capital gains of that particular year, then they can be SEPARATELY carried forward for the next 8 consecutive years.
4. Losses under the head 'Capital Gains' CANNOT be set off against income under other heads of income, i.e., salary, business & profession, house property, and income from other sources.
5. A few tips:-
a) You may want to wait for a few more days, to move from short term to long term tax treatment, if you're making profit on an equity transaction, for better tax benefits.
b) As long term capital loss cannot be set off against short term capital gain, you will be able to minimize your tax liability if you sell an equity security making huge losses for you within a period of one year.
c) If you have sold equity before March just for reducing your tax liability, you may "reinstate" your portfolio by buying the same entity again after 1st April.