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Can I use capital loss from the sale of an unlisted share to offset STT paid capital gain?

Ramalingam Kalirajan |6287 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 27, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Aug 20, 2024Hindi

Money

I have a demat share bought many years ago at high price but is not quoted now. If I sell it to a friend at a nominal price in off market sale (without STT), can I use the resulting capital loss to partly offset my STT paid capital gain ? If this is not allowed is there any other way to do this?

Ans: You cannot use a capital loss from an off-market sale (without STT) to offset capital gains where STT was paid. Capital losses are only eligible for offset if they arise from transactions where STT was paid, as per tax laws.

To potentially utilize the capital loss, consider selling the shares on the stock exchange if they become listed again. If that's not possible, the loss might be treated as a long-term capital loss, but it can only offset similar capital gains, not those involving STT. Consulting with a Certified Financial Planner or tax expert may help explore other options.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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I have incurred a long term capital LOSS from selling a property in India. The capital loss was calculated considering the indexed cost of acquisition and the value of consideration (i.e. Sale price) . My query is - - Whether the Long Term capital Loss arising out of sale of property can be set-off against the Long Term capitals gains from sale of Equity shares/ Mutual fund units of Equity schemes?

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Hello sir, Good evening. kindly advise me on the following. 1,.I am having two dmat account with different brokers under the same PAN. now i need to consolidate the one demat account by transferring the shares of A demat account to B dmat account off market. now the question is 1. This off market transfer will attract the long term capital gain or not ? all shares in both dmat account are for more than one year. Only transfer from one broker to another broker with Sam PAN for consolidation and monitoring purpose. 2. For this off market transfer without payment of STT, In future if I sell these transferred shares what would be capital gain effect. All share are heldfor more than one year. However original purchase is STT paid. pl guide . Vinod Gupta

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Hi, Can I adjust Long Term Capital Loss incurred from selling a property against Long Term Capital gain from share sale?

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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