Income Tax – Set-off long term loss only against LTCG | The Financial Express

Clipped from: https://www.financialexpress.com/money/income-tax/your-queries-income-tax-set-off-long-term-loss-only-against-ltcg/2940173/

Equity shares are classified as long term if they are held for a period more than 12 months.

Your queries: Income Tax – Set-off long term loss only against LTCGWhile no documentary evidence is required for claiming investment-linked tax deductions in the income tax return form, you have to furnish the address of the property for the purpose of claiming deduction under Section 24. (IE)

By Chirag Nangia

* I have lost some money in stocks and have gained from investing in gold exchange traded funds (ETFs). Can I offset the loss with the gains that I made after selling Gold ETFs?

—Aniket Goyal

Equity shares are classified as long term if they are held for a period more than 12 months. However, Gold ETF is classified as long term if it is held for a period more than 36 months. Short term capital loss from sale of shares can be set off against short/ long term capital gains from gold ETF. However, long term capital loss from sale of shares can only be set off against long term capital gains from sale of Gold ETF.

* Last year, I got a notice for defective return. I rectified it and filed it again. Now, I have got another notice for the same returns. What is the solution?

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—Soumil Sharma

You need to first understand the reason why such notices for defective return are being issued. Any curative action or refiling of return may be advised only after understanding such reason. If such defect cannot be rectified for any reason beyond control of assessee, then a necessary application may be required to be made to concerned tax authorities explaining the difficulty and request them to consider the return as ‘valid return’. Take help of a chartered accountant or tax practitioner if needed.

* Do I have to give the address of property for which I have taken a loan and am availing tax benefit under Sections 80C & 24?

—Amit Kumar

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While no documentary evidence is required for claiming investment-linked tax deductions in the income tax return form, you have to furnish the address of the property for the purpose of claiming deduction under Section 24. In fact, particulars like address, ownership, share in property, type of property (whether self-occupied or let-out), etc., have to be furnished while declaring income under head ‘house property’, wherein you shall be entitled to claim deduction under Section 24 in respect of interest on borrowed capital. However, deduc-tion under Section 80C falls under chapter VI A deductions and it can be claimed without declaring any particulars of the property.

The writer is director, Nangia Andersen India. Send your queries to fepersonalfinance@expressindia.com

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