hort term capital losses are allowed to be set off against both long and short term gains. However, if you are not able to set off your entire capital loss in the same year, both short and long term loss can be carried forward for 8 assessment years.
You have suffered a loss under the head “Capital gains”. Rules do not allow loss from capital gains to be set off against income from any other source apart from capital gains. Any gain or loss within 12 months of purchase of equity is short term, otherwise it is long term. Long term capital loss can be set off only against long term capital gains. Short term capital losses are allowed to be set off against both long and short term gains. However, if you are not able to to set off your entire capital loss in the same year, both short and long term loss can be carried forward for 8 assessment years. Therefore, if your only other income is from salary you can carry the loss forward to future years and set it off as and when capital gains arise.
I am an 80-year-old pensioner. Am I supposed to pay tax on fixed monthly medical allowance and the refund of tax received?
Amit Maheshwari, Partner, Ashok Maheshwary and Associates, responds: Taxpayers aged 80 or more are not required to pay any tax up to an income of Rs 5 lakh. The interest on income tax refund and the medical allowance are part of the taxable income and if these two along with other taxable income of yours and minus any of the eligible deductions exceed this limit, you will be subject to pay tax on the excess amount of income.
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