I am aware that short term capital gains can be booked against short term capital losses. And similar action can be taken for long term capital gains and losses. I will take the liberty of putting some issues in question form, so as to be clear.
1. Is there no difference between gains/losses from debt funds and equity for the said booking of gains/losses?
2.All Short Term If I have capital loss of 2 lakh from sale of one particular stock and capital loss of 1 lakh from sale of another stock, and capital gain of 50 thousand from redemption of debt mf, is it right to carry fwd loss of 2.5 lakh.
3. All Long Term If I have capital gain of one lakh from one stock, capital loss of fifty thousand another stock, and capital of sixty thousand from debt fund, what will be the tax treatment?
4. Is Equity Arbitrage Fund to be treated just like equity for tax treatment? My doubt arose because there is no STT being charged for equity arbitrage fund.
5. Is Gold ETF to be treated just like a debt fund, for the purpose of tax on capital gains.
REPLY :
answer for ur queries 1 by 1.
First of all Plz. note in case of Eq. MFs as well as Eq., as the LTCGs r tax free, hence u can`t claim LTCL also from Eq. funds/Eq. to sat off against ur LTCG from other capital assets (debt funds, physical gold, property etc.)
1. STCL from Debt as well as Eq. funds can be set off against STCG as well as LTCG from debt funds, physical Gold, property & STCG (only) from Eq. funds.
LTCL of debt funds can be set off against LTCG of Debt funds, Physical gold & property.
2. Yes u r right, ur total STCL is 2+1=3L Rs. out of which 50K STCG `ll be sat off. Hence the final STCL for carry over `ll be 2.5L Rs. only
3. As i already stated, for Eq. funds & Eq. LTCG r tax free hence LTCL r also not available for sat off. So in this case, u can carry over ur LTCL from Debt funds of 60K (incidently u forget to posted- is it a loss or a gain, i assumed it as a loss).
4. Yes Eq. Arb. funds r to be treated as Eq. Funds for tax treatment. Plz. clarify from ur invested Eq. Arb. fund why they r not charging STT?
4. Yes GOLD ETFs r to be treated on par with other debt funds.
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