![]() Short term capital loss can be carried forward up to 8 years and can be set off against short term capital gain and long-term capital gain before taxation. However, if there is any capital loss, then file it before due date to carry forward the loss and then set off from the capital gains arising in future. How are losses treated & can it set off against future profit?Īny Unadjusted losses can be carried forward up to 8 years. Long Term Capital Gain = 176000 (Up to Rs 100000 is not taxed as per the provision) TITAN (INE280A01028), HOLDING PERIOD= 3 YEARS 8 MONTHS At Rs 820 per share on 27 th November 2017 and sold the same 200 shares of Titan at Rs 1700 per share on 1 st July 2021 LARSEN AND TUBRO (INE018A01030), HOLDING PERIOD = 8 MONTHS 6 DAYS ![]() Mr A bought 100 shares of Larsen & Toubro ltd at Rs 950 per share on 8 th June2020 and sold the same 100 shares of Larsen & Toubro at Rs 1500 per share on 15 th February 2021 within 1year (less than 12 months). Now let’s understand the current tax regime with an example: 2018 - Present: LTCG tax was reintroduced in 2018 at 10% (with gains up to ₹1,00,000 being exempt).(which was later increased to 15% in 2008). Short term capital gains were also reduced to 10% from 15%. It was a landmark decision which led to the expansion of Indian capital markets. 2004 - 2018: In 2004, Finance Minister P Chidambram abolished tax on LTCG and introduced STT (a tax levied on sale and purchase of shares).Taxpayers could avail tax of 20% with indexation benefit or 10% without it. 1999 - 2004: Finance minister Yashwant Sinha capped the tax at 10%.Holding period for LTCG was 1 year for Stocks and 3 years for immovable property and gold. The 1992 Union budget also introduced a special provision for LTCG that levies 20% tax (with indexation) applicable from April 1993. ![]() Manmohan Singh, introduced the concept of indexation that inflates the cost of acquisition with the inflation rate reported by the government every year. 1992 - 1999: Till 1991, the taxation was done at individual’s slab rates but its major flaw was that inflation was not taken into account.1957 to 1992: The taxation on capital gains was made permanent with the aim to increase tax revenue.In 1949, taxation on capital gains was abolished as it was believed to be hampering the growth of the stock market.More than ₹15,000 was taxed at a progressive rate with the highest bracket of more than ₹10,00,000 being taxed at 31.3%. ![]()
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