STCG Calculation Query

Taxation
1

Hi,

I had a query for STCG calculation for FY 24-25. As per the last budget equity/equity mutual funds sold before 23 July 2024 were taxed at 15% and post that day they would be taxed at 20%.

Prior to 23rd July I had made short term gains and post that I have booked some losses and overall I stand in the negative for the FY 24-25 in terms of short term transactions for equity & equity mutual funds.

My question is would my short term losses post 23rd July 2024 till date be offset against the short term gains made prior to July 23rd 2024 ? or would I have to pay taxes on the short term gains made prior to 23rd July 2024 at 15% and not be able to offset the losses post 23rd July 2024 ?

My understanding is that I should be able to harvest my losses , however I would appreciate any feedback on this.

@Quicko

2

Hello @Vpp

As per the Income Tax Act, you can set off the losses incurred after 23rd July against the profits made before July 23rd.

There is no restriction on the same.

Thank you.

3

Thank you!