Can I offset the STCG from Debt MF against STCL from equities?

Taxation
1

I have booked STCL of worth 9k from Equity.
I have gains of 44k from STCG with Debt MF.

  1. I can offset the losses from Equity and should pay tax on 35k based on the Slab rate, right ?

I have booked LTCL of 20k. And having 3.5k profit realised from Debt MF.

  1. Can I offset this Profit with the Loss ?

I am planning to withdraw lumpsum from the equities with LTCG of around 1.5 Lakh(Unrealised).
3) What would be my total LTCG considering the above scenario ?
4) Will chronology be taken into account and the Debt MF gains can be offset against the Equity LTCL ?

@ShubhS9 @Akash_Shah @Bhuvan can you help me with this ?

2

@Quicko

3

Hi Sriram,

  1. yes, you can offset the STCL from equity with STCG of Debt MF.
  2. Long term capital loss cannot be setoff against the short term capital gain. The ₹20k loss will be carried forward.
  3. Consider the point 1 & 2 - for you exemption under section112A up to rs 1,25,000 would be available and need not pay tax on LTCG upto 1.25lakhs.
  4. As per Income Tax act the sale debt mutual funds are always treated as Short term capital gain hence , will not be able to set off.

Regards,
CA. Shreyas Raj N
[email protected]

1 Like
4

what are you trying to do ?