Hi,
I have 259 shares of abc and only 247 qualify for longterm holding.i want to sell 12 shares for loss and setoff against stcg.My doubt is because of fifo type shares sell process ,bottom 12 shares which are more than1 year will be sold,in this case does this stcl qualify for setting off against stcg ?? pls throw your suggestions!
If you’ve held those 12 shares for more than 1 year and if you sell them at loss, that will be treated as Long term capital loss (LTCL) which can be set off against only LTCG. Whereas, if it is a STCL , it can be set off against both STCG & LTCG
If you aren’t able to set off the losses in the current year itself, you can carry forward those losses and set them off till 8 FYs
But zerodha shows 247 shares only longterm out of my 259 shares,so there are 12 shares less than 1 year.FIFO type will delete bottom shares which are more than 1 year,this part is confusing.
Yes. FIFO is always followed
Hey @Viswanath_Kadiyala,
The FIFO settlement method will be followed. If you sell the shares, the long-held stocks will be sold first and as correctly mentioned by @Meher_Smaran,
Hope this clarifies.