DIVIDEND income and set off against capital loss on sale of same share?

Is it possible to set off dividend income which will be clubbed with total income from this FY to set off against capital loss on sale of same company share in same FY ?

@Quicko can you.

Majesco will last trade WITH DIVIDEND on 22 December 2020 and expected to give around 1000 per share dividend . from 23 December it will trade at HUGE TRIM DOWN PRICE being officially adjusted for extra ordinary dividend . can an investor sell it at huge loss and claim set off against huge dividend received both in same financial year ?

Hi @aniln,

Capital loss can only be set off against other capital gains.

  • LTCL against LTCG
  • STCL against both LTCG and STCG.

Since dividend income is reported under the head Income from Other sources, you cannot set off capital loss against dividend income.
Read more on set off and carry forward of losses.

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