Hi
I have ltcg losses of more than 1 lakh and stcg profits of more than one lakh!
Can I setoff entire profits of stcg with ltcg losses before March 31st? Please confirm.
As per the law, While short term capital loss (STCL) can be set off against STCG and LTCG, Long term capital loss (LTCL) can be set off against only LTCG
So, you cannot adjust this year but you can carry forward them for next 8 financial years
Tagging @Quicko to share more insights on this
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As correctly mentioned by @Meher_Smaran, LTCL can only be set off against LTCG. Hence, you will not be able to set off LTCL against your STCG. However, you can carry forward them for 8 years and can set-off against any LTCG you have in the subsequent years.
Here’s a detailed read that might help further!
Hi,
Thanks for explaining.
Another doubt is I have 1.79 lakh stcg for this financial year,tax loss harvesting is showing 18.32k I can book losses.how this helps really . For 1.79 lakh roughly I pay 15% 26850 as tax
If I deduct 18.32k I pay tax of 24102,how it is logical for just saving of 3k in form of tax,how it is justified to book 18.32k loss? Please explain this one thing.
Hey @Viswanath_Kadiyala,
Tax loss harvesting is when you sell loss-making shares and mutual funds before the end of the financial year by converting these unrealised losses into realised losses.
With regards to tax planning, it totally depends on how you analyse the situation and optimize your taxes.
Hope this helps!
