So when you tax is on net profit only (I’m assuming it means total profit - total loss), do I calculate this across all 4 of these categories? Or, net only with debt short, or only within debt long, etc.?
And the link said loss can be carried forward for at most 8 years. I hope it doesn’t happen, but in case I am in the situation where one year’s loss is not adjusted by profit/loss in next 8 year, what are the rules for 9th year?
The tax liability is based on the duration so the net shall be separate in the case of Short term debt and Equity and separate in the case of Long term Debt and Equity. However, you can setoff Long term capital gains against the short-term losses, not vice versa.
If the losses are not set off within the next 8 years they will lapse. For further clarification, you can refer to the below article.
Hope this helps
My question is different. I am asking about any tax implication when a mutual fund sells a holding (do mutual funds pay STCG and LTCG when they sell any holding). What you’ve shared is about the tax implication of when someone sells a mutual fund unit.
As per section 10(23D) any income arising in the hands of a Mutual Fund (subject to conditions u/s 10(23D) of constitution of mutual fund being fulfilled) shall be exempt.
So, as per the above provisions, a mutual fund is not required to pay capital gain taxes when they transfer/sell any holding.
In ITR 2, Equity LTCG on which STT is paid is taxable u/s 112A.
LTCG from debt mutual fund should be filed under “Schedule CG-From Sale of assets other than all the above listed items-Long Term Capital Gain”
STCG from Debt mutual fund shouldn’t be clubbed with Equity STCG. It should be filed under “Schedule CG-From Sale of assets other than all the above listed items-Short Term Capital Gain”
Individual, HUF, LLP, each of these is a separate legal entity with a unique PAN. You cannot set off loss incurred on one PAN against profit earned on another PAN. The income or loss must be correctly reported in the Income Tax Return for the relevant entity in the relevant financial year.