I earned 3lakh LTCG by sale of MF and shares and lost 120000 by sale of MF and shares during this financial year. How to reduce my tax liability. If Invest in MF or shares can I reduce the liability

Ans: You have raised the point whether your past losses in F&O and Intraday trading can be used to save tax now? There are some points to note here:-

1. F&O is classified as a non-speculative business while Intraday Trading is classified as speculative business.
2. Both speculative and non-speculative business incomes are added to your overall income including salary, other business income, interest on deposits, income from rentals, etc and taxed according to the applicable tax for you.
3. Losses arising from speculative transactions are called speculative losses. These losses can be carried forward for a period of up to four consecutive financial years. Also, they can be set-off only against speculative business income made during that period.
4. On the other hand, losses arising from non-speculative transactions (non-speculative losses) can be carried forward for a period of up to eight consecutive financial years. You can set-off non-speculative losses against any other business income except salary in the same year.
5. Usually, trading in futures & options must be reported as a business unless you have only a few trades (say if only 2-3 trades) in the financial year. Remember this also applies to individuals. You don’t have to be formally incorporated as a company or some legal entity to earn business income. Individuals can have business income too.

From your statement it seems that you have not reported your past losses. If you have not done so, then you would not be able to set them off in the manner given above. However, if you have any such losses in the last financial year whose Income Tax Return (ITR) is yet to be filed, you can use the set-off rules as given above.

For more clarity, do discuss it in more details with your tax filing person.

Ans: Unfortunately since you own more than 2 properties in your name there are not much options available.

You can invest in REC / NHAI bonds to the tune of INR 50 lakhs.

Please take your CAs advice before moving ahead.

Ans: 01. You are liable to LTCG on your share of sold property.
02. Involving your sons & wife won't help from i.tax point of view.
03. If you don't want to invest in property anymore, you may purchase Capital Gain Bonds u/s 54(EC) from REC or NHAI etc., up to a maximum limit of Rs.50.00 lakhs.
Most welcome for any further clarifications. Thanks.

Ans: 01. Kindly mention, whether this was a STCG or LTCG.
02. You may set off STCL against any of the STCG or LTCGs. However, LTCG can be set off against LTCG only.
03. Loss can be carried forward for a period of 8 years, provided you have filled your ITRs.
Most welcome for any further clarifications. Thanks.