Hi @Russell
Really appreciate your humble suggestion. Glad to see appreciation towards the end 
I have made the changes to the relevant places where it would have been better.
Thank You, Russell.
Say I incur a 4,00,000 long-term capital gain and 2,00,000 short-term capital loss in a year. If I donât have any other income, and I donât adjust the loss, my taxable income would be 4,00,000, but my tax would be zero, as per the income slab.
In this case, can I carry forward the 2,00,000 Short-term capital loss?
Or do I need to mandatorily adjust it with LTCG and my taxable income will come down to 2,00,000?
Considering youâve no other income and LTCG of Rs. 4,00,000 and STCL of Rs. 2,00,000, the STCL willl be first set off against the LTCG and the remaining gains will be taxable. You cannot choose to not adjust the loss.
So, you will have to mandatiriky adjust the loss and paytax on the LTCG of Rs 2,00,000. However, LTCG upto Rs. 1,00 000 is exempt. So you will have to pay tax on the remaining 1,00,000. If your total taxable income is upto Rs. 5,00,000 you will get a rebate u/s 87A and hence pay no tax.
Hi @Shrutika_Shah ,
Iâm delighted to read that my suggestion was useful. And, the appreciation previously mentioned was really well deserved - I was truly amazed as to how quickly you (and other members of the Quicko team) respond!
Thanks again, Shrutika.
Russell
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@Shrutika_Shah Thank you for great info!!
I have a question for ITR3, I have losses form LTCG of Stocks.
When I filled in 112A and submitting the ITR3 I am getting the error on Schedue PTI.
Could you please advise me what I am doing wrong?
Thanks in advance!!
Well, thanks for the appreciation.
It is difficult to understand the error from the screenshot as there seems to be some mismatch in the figures.
You can Submit a ticket : Help Center and our team can help you with the same.
You can also book a MEET and connect to a tax expert on an online video conferencing meet and get all your queries solved.
I had LT capital loss of 5lac on sale of my house property which was jointly owned by me, my wife and my mother (doesnât file ITR). How do I adjust 2 lacs each against salary income of me and my wife while filing ITR
Hi @RAHUL_SOOD
Long-term capital loss (LTCL) cannot be adjusted against salary income.
LTCL can only be set off against LTCG.
I have some short term gains, intraday gains, and some long term loss and net profit in f&o and short term gains in mutual funds and a ULIP gains which matured in April 2022.
I am thinking of declaring my stock market gains like short term, intraday, long term loss and f&o as business income.
what I want to know is that if I do this will I also have to add mutual fund investments and ULIP gains in my business income then or can these can be shown separately
For the FY 2021-22, I had a loss from F&O trading. I filed ITR3 to carry forward losses from F&O for the year under the head âlosses from businessâ in Schedule CFL.
In FY 2022-23, I have not done any trading/business and filed ITR2. After filing, it is noted that there is no separate head for âlosses from businessâ in Schedule CFL in ITR2. I would like to carry forward the F&O loss from previous year to future years. As I filed the IT returns for the current year AY 2023-24 using ITR2, how can I carry forward the loss?
Is it mandatory to file a revised ITR3 with zero business income and carry forward loss from the previous year in Schedule CFL? Is there any provision to carry forward F&O loss from previous years with ITR2?
Thanks in advance!
Youâve reported the F&o losses of the previous year (FY 2021-22) and hence you can set off and carry forward them for the next 8 years.
This year (FY 2022-23) if you donât have any business income, youâve correctly filed ITR 2. You need not file any revised return to carry forward the loss or file ITR 3.
In future years when you have business income, remember to manually enter and report this loss while filing your return in the future.
Hope this helps.
If carried forward LTCL from previous years is, say Rs. 3.5 lakh. Current year LTCG is, say Rs. 2 lakh. While filing ITR2, full amount of current year LTCG is adjusted automatically against carried forward LTCL of previous years and remaining LTCL of Rs. 1.5 lakh carried forward for next years.
Is there an option that I would carry forward LTCL of Rs. 1 lakh only and take advantage of exemption on LTCG for remaining 1 lakh as per exemption limit? In such case carried forward LTCL to next years will be Rs. 2.5 lakh.
@desaipt2003, short answer: no such option.
The current yearâs LTCG must be set off first against previous yearsâ LTCL and only then can any remaining LTCL be carried forward. Iâve asked a similar question in post #9. As have others in this thread. And, the answers from @Shrutika_Shah on this matter are pretty clear.
Hi @desaipt2003
As rightly mentioned by @Russell, brought forward losses are adjusted first then the remaining is carried forward. There is no such way where you can carry forward the loss as you want to.
Thanks @Shrutika_Shah and @Russell for useful information. @Shrutika_Shah you are doing great help to tax payers.
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can we claim tax exemption of 1 lakh on capital gains and do tax loss harvesting at same time while filing income tax returns?
Example -
Long term capital gains received is - 1,30,000
Short term capital loss is - (-25,000)
Exemption of 1 Lakh = 1,30,000 - 1,00,000 = 30,000 and with Loss harvesting 30,000 - 25,000 = 5,000.
Pay 10% of 5,000 as it is long term capital gain?
As per your example, the STCL (25,000) will be set off against the LTCG (1,30,000).
Hence your net taxable LTCG will be 1,05,000.
As per section 112A, LTCG up to 1 lakh will be exempt from tax, and the gains exceeding 1 lakh (5000) will be taxable at 10%.
Hope this helps.
Hi Team,
I have a question regarding the applicability of tax audit. I have a FnO loss of around 60k with my turnover also below 2 crore and Iâve not been opting for any presumptive taxation scheme in the previous years.
Will I be required to get tax audit done to claim and then carry forward the non-speculative business loss (FnO loss)?
Hi @Sakshum
You can carry forward the F&O losses even without an audit.
A tax audit is as such not applicable to you if the turnover is also below 2 crore and Iâve not been opting for any presumptive taxation scheme in the previous years.
Hope this helps.
Hi Team,
In FY 21-22 i had loss in trading (all segment) but turover more than 5 cr so audit happned and income from salary as well
In FY22-23 have also loss in trading and turn over approx 2 cr and donât want to carry loss as will no do trading in furture and i have income from salary as well above 5 Lakh
Kindly suggest if not show loss in ITR and just file simple return and any action can happen ?