Let’s say one has STCL- 5000
LTCL- 5000
LTCG- 1000
STCG- 1000
The above are both from Indian and US stocks combined. From what I have read, suppose there is STCL from Indian stocks/mutual funds- 2500/- and from US stocks- 2500/- then the total of these is to be filled in the STCL column and likewise for the rest. Is this correct?
Now instead of offsetting the LTCG with the 1.25 lacs limit, it will be offset with LTCL or STCL? STCG with offset only with STCL that is clear.
Also if there is 25% dividend deducted from US stocks then does it come at the last step to offset any taxes? I mean first LTCL or STCL is used then the 1.25 lacs limit and lastly the 25% dividend tax deducted in the US?
And lastly the 25% dividend tax deducted in the US, can it be used to offset only taxes which arise from capital gains or from salary/income from other sources also?