| Question And Answer | |
|---|---|
| Subject: | 112A WHETHER FOR LTCG 112 A CAN BE OPTED AND LTC LOSS CAN BE CLAIMED SEPARATELY. MEANING THEREBY WHETHER ASSESSEE CAN OPT FOR 112A FOR GAIN AND OTHER FOR LOSS ON EQUITY SALE. |
| Category: | Income-Tax |
| Querist: | RAJENDRA SINGH BORDIA |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | adjustment of loss, Capital Gains, Long term capital gains |
| Date: | September 2, 2021 |
112A WHETHER FOR LTCG 112 A CAN BE OPTED AND LTC LOSS CAN BE CLAIMED SEPARATELY. MEANING THEREBY WHETHER ASSESSEE CAN OPT FOR 112A FOR GAIN AND OTHERS FOR LOSS ON EQUITY SALE AND ADJUST LOSS
Section 112A of the Act pertains to “Tax on long-term capital gains in certain cases” which was introduced vide Finance Act, 2018 when exemption on long term capital gains under section 10(38) of the Act was repealed.
As per the said section, a rate of 10 percent is levied on long-term Capital Gains in sale of shares exceeding Rs. One lakh.
Therefore, Set-off of any allowable losses should be given effect prior to computation of tax. Therefore , excess of Capital Gain after set-off of losses, if any, above Rs. One lakh would be subject to tax at the rate of 10 percent.
Section 112A of the Act pertains to “Tax on long-term capital gains in certain cases” which was introduced vide Finance Act, 2018 when exemption on long term capital gains under section 10(38) of the Act was repealed.
As per the said section, a rate of 10 percent is levied on long-term Capital Gains in sale of shares exceeding Rs. One lakh.
Therefore, Set-off of any allowable losses should be given effect prior to computation of tax. Therefore , excess of Capital Gain after set-off of losses, if any, above Rs. One lakh would be subject to tax at the rate of 10 percent.
How does it make difference?? when LTC loss has to be adjusted ONLY against LTCG. I carried forward LTCLoss for 8 yrs and cud not use it gainfully.