How to Use Loss on Long Term Listed Share to Reduce Taxable Income !


listed sharesThe tax planning method suggested in this post applies in certain types of situations .Say , a you hold  many listed shares for more than 12 months.The market price of these shares  have gone down which means , if sold , you will incur lots of long term capital loss .However,such long term losses  can not be adjusted with any other gains including long term capital gains . This is so because of the general view that loss on long term  listed shares can not be adjusted as the long term capital gains income on sale of listed shares is exempt u/s 10(38) of the Income tax Act. This view gets strength from a Supreme Court judgment in CIT v. Harprasad & Co. (P.) Ltd. [1975] 99 ITR 118 (SC) .

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