Quicko: Why is long term considered in offset when the long term capital gain is < 1 lakhs?

Taxation
1

@Quicko Why is the long term considered in set off when the long-term capital gain is < 1 lakh?
I have a loss in FnO and only want to offset it with short-term and other sources as my long capital gain is < 1 lakh.

When I use your tool for filing ITR3, it offset even the long-term capital gain when the amount is < 1 lakh. There is no tax applicable for the long term then why offset it?

1 Like
2

@Quicko Can you please answer this?

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See this discussion from March. I had said that the ITR would compute things similar to what you describe in your post (that is, it would offset long term losses first against the 1L exemption, so that this exemption gets eaten up first,), and both @Quicko and @San78 said this is not how it would be. @San78 also posted a screenshot of the ITR form showing a computation which does things differently than what I said.

Perhaps you are entering things incorrectly in the ITR in some way? Does the screenshot from that other post make sense?

4

Hi @Jack_R

Losses set off is auto calculated by the Income Tax as per the IT Act in a specified sequence.

You cannot add any input in the Schedule CYLA.

For example, you want to carry forward the losses from FnO without setting it off against the LTCG even when you have LTCG more than 1 lakh, you are not permitted to do the same. Losses are adjusted as per the rules specified.

Hope this helps.

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I am not entering anything wrong, I just imported the Zerodha P&L statement and Quicko as well as ClearTax made the calculation and offset it.

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Good to know. So then things are as I said: the 1L exemption gets adjusted first against losses.

7

Yes, but it is actually unfair