Can LTCL be carry forward without being set off against LTCG

Taxation
1

If there is a long term capital loss (LTCL) of 30k and a long term capital gain (LTCG) of 80k.

  1. Can the person get an exemption on the LTCG of 80k as it is below 1 lakh limit and also carry forward the LTCL of 30k to next year?
    Or
    Should the person first set off the LTCL against the LTCG and the difference amount (80k-30k) 50k should be exempted under the 1 lakh limit?
2

When you file the returns, the net figure you will report will be 50K as LTCG which is within the 1.25L.

So no income tax liability. The netting off factor will come only when you have STCL which can be offset against LTCG but not visa a versa but then this can be carried forward.

@Quicko - Please clarify

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3

Thanks your response. This part is not pretty clear. Could you please clarify?

4

See this is my understanding. I am not an expert.

We have the following
STCG
STCL
LTCG
CTCL

Assume, you have STCL and LTCG. In this case, the amount of STCL can be offset against LTCG.
Assume you have STCL and STCG. In this case the amount of STCL can be offset against STCG.

Assume you have LTCG and STCL. In this case you cannot offset LTCG to STCL.

It is better @Quicko who has been tagged to give clarification to your query. They are the experts.

5

Okay. Thank you
My scenario is about LTCG and LTCL.
Will await for @Quicko team’s response

6

Hi @ldarshan1991,

Your long-term capital losses will first be adjusted against the gains and the remaining LTCG will be eligible for the ₹1L exemption (this limit has been revised to ₹1.25L).

7

Thanks for clarifying @Quicko

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