Short Term Captial Loss

POSTED BY TheZionView ON September 13, 2011 11:56 pm COMMENTS (5)

Recently there was a discusion in the forum on selling and buying back on same day in Equity MF to transfer a fund to another person name.

I have a question with respect to Short term captial loss in connection to this.

Assume i have invested  1 lakh in a MF in April and it is down -10% by December .

Now i sell and buy back this MF on the same day. Which will not invlove any additional cost for me. Can i show this Short Term Captial Loss in my income tax to compensate for the Short term captial gain obtained elsewhere(shares,other MF etc)?

5 replies on this article “Short Term Captial Loss”

  1. ashal jauhari says:

    Dear TheZionView, yes the so called STCL can be adjusted against taxable STCG or taxable LTCG.



  2. Abhishek says:

    HI Nayan,

    This is a long term capital loss, which is of no use.


  3. Nayandeep Saha says:

    I bought a Kotak Indoworld Infrastructure MF in 2008 and sold it off last week at around 7% loss. Can I claim tax benefit on this loss? If yes when can I claim it?

  4. Ramesh says:

    If done by the same person, yes it will get short term capital loss.
    Remember, there is a 0.25% STT associated with selling of the equity MF (which you can also claim).

  5. Abhishek says:

    HI Zion View,

    If you are selling and then buying in some other persons name, then the story changes.. Are you Selling first and Buyin in your own name ?


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