Set off short term capital loss in debt funds against LTCG in equity funds
By Chirag Nangia
I got short term capital loss from a debt fund in FY21 on which no STT is charged. In which column do I report it? I got long-term gain from ABSL Frontline fund in FY 21. Can I set off the loss against this gain?
Short-term capital gains/loss from debt mutual funds may be disclosed under ‘sale of assets other than above listed items’ under Schedule CG of ITR Form. I-T provisions allow set-off of short term capital losses against both short-term and long-term capital gains. So, the loss you have incurred can be adjusted against your long-term capital gains. Any unadjusted loss is carried forward to following eight assessment years. You have to disclose both long-term and short-term gains/ losses in the ITR Form, the losses are automatically set-off against eligible income.
I booked loss in shares in FY20. How should I report losses in ITR? I have also received Rs 26,000 dividend in FY21. Where should I report the same?
Assuming you had reported the losses in FY20 and wish to take the benefit of set-off in current financial year, you have to fill in ‘schedule CFL’ in the ITR Form, giving details such as relevant AY (2020-21), date on which the ITR declaring the losses was filed and amount of loss so reported. Thereafter, the ITR utility shall automatically set-off the losses against the eligible head of income. Dividend income is taxable under the head ‘other sources’ and you have to report it under dividend income [other than (ii)] in the ITR Form. The gross amount of dividend shall have to be declared in the ITR. Any TDS thereon, may be claimed as credit from the final tax liability.
Do we have to show income from FD, dividends or are these automatically recorded by income tax software just as TDS is recorded on Form 26AS?
—H S Chopra
ITR forms are usually pre-filled with information available with I-T depart-ment to make filing easier. However, it is advisable to match all particulars of income, exemptions, etc., with the actual information and make corrections, if any, before submission of ITR form. If you have income from interest on FDs and the same is not pre-filled, you have to input the details of income so earned under “Schedule OS”-Income from Other Sources> Interest, Gross> From Deposits.
The writer is director, Nangia Andersen India. Send your queries to email@example.com