Hello Mr.Mihir...Pl.confirm that LTC.LOSS of App.03Lacs incurred on Sale(after 12Yrs.) of Residential Flat in FY2023-24 can be adjusted against LTC.GAIN (App.04Lacs) made on Sale of Equity (after mor than 1Yr.) In FY.2023-24 itself upto 03Lacs...and Balane of Rs.1Lac Claimed as Exempted....Thanks.

Ans: Dear Sanjiv,

Based on the information available, it appears that you can indeed adjust your Long Term Capital (LTC) loss against LTC gains in the same financial year.

In your case, the LTC loss of Rs. 3.5 Lacs from the sale of a flat can be adjusted against the LTC gain of Rs. 4 Lacs from the redemption of equity shares and mutual funds. This leaves you with a balance LTC gain of Rs. 50,000.

As per the Income Tax Act, LTC gains up to Rs. 1 Lac are exempt from tax. Therefore, your balance LTC gain of Rs. 50,000 should be exempt.

Regarding the limit of LTC loss adjustment, there doesn't appear to be a specific limit of Rs. 2 Lacs for adjusting LTC loss against LTC gains. However, any unadjusted LTC loss can be carried forward to subsequent years and set off against future LTC gains.

Please note that this is a general interpretation based on the available information. For a more accurate understanding of your tax liability, I would recommend consulting with a tax professional or a chartered accountant who can provide advice based on a comprehensive understanding of your financial situation.

I hope this helps!

Ans: Credit of TDS paid at the time of acquisition of property is available to seller and not to the buyer

Ans: Yes, long term capital loss covered in Sec 112 can be set off against long term capital gain covered in Sec 112A. For gain above 1lacs is taxable @10% in Sec 112A