I have booked LTCG during this FY. I have the following:
–LTCG carried forward from FY 2023-24. I will set this off.
–I have STCG during the current FY, which will automatically set off.
–I intend to book some STCL as part of tax loss harvesting, IF I can set that off against the remaining LTCG.
Will the above set off be permitted?
Is this possible, also what is the benefit. You would have already paid tax in 23-24 on the LTCG. On STCL or LTCL can be carry forwarded provided you had filed the return.
Curious as to why you would carry forward LTCG.
The way I understand is STCL and LTCL can be carried forward for the next 8 years.
This is provided you file returns and record the losses.
Long-term capital loss will only be adjusted towards long-term capital gains. However, a short-term capital loss can be set off against both long-term capital gains and short-term capital gain.
The short term realized profit shown on Tax P&L dashboard (Console) is NOT matching up with Downloaded Tax P&L report.
Can someone guide me on it?
Am I missing something?
Hi @Swadesh_Singh1
Can you please create a ticket here with the details? We’ll check and get back to you over the ticket.
It seems you’ve mentioned carrying forward LTCG from FY 2023-24. Just to clarify—long-term capital gains (LTCG) cannot be carried forward; only long-term capital loss (LTCL) or short-term capital loss (STCL) can be carried forward to set off against future gains.
If you missed reporting LTCG in your FY 2023-24 return, you should consider filing an ITR-U (updated return) to correct it.
Now, for the current financial year:
You have short-term capital gains (STCG) and plan to book short-term capital loss (STCL) for tax loss harvesting.
The STCL can be set off against the STCG, reducing your tax liability.
If the loss exceeds the gain, you can carry forward the remaining STCL to future years and set it off against future capital gains.
Hello @Passionate_trader ,
Yes. ITR-U can be filed for FY - 23-24 before 31st March’25.
Updated returns for any year can be filed within 48 months from the end of the relevant assessment year subject to higher tax rates and interest penalties.
@Quicko For FY2023-24 , assessment year will end on 31march 2025, and there is 25% additional penalty if i file itr-U within 12 months after the assessment year.
So as we know assessment year is not yet end (till 31march 2025) do i have to pay this additional penalty of 25%?
or any other penalty except just 1% monthly interest?
Thank you very much for elucidating the rule position. This has saved me a lot of taxes this FY. This FY, I booked an unusually high LTCG while I also had a huge LTCL with no chance of benefitting from a set-off unless I availed of a set-off under this provision. As a senior Citizen who pays advance tax and files returns on time, I am sure there may not be penalties of any kind.
Hello @Passionate_trader ,
As per the law, the 25% additional tax needs to be paid if you are filing your ITR-U ‘within 12 months from the end of the relevant assessment year’.
As of now, the ITD does not give an option in the utility for filing ITR-U before the end of relevant AY.
Thus we need to pay the 25% additional tax on your tax payable even though we are filing before the end of the relevant AY.
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