Can you offset stock market loss with Gold ETF? EPF withdrawal, and other queries answered

Updated: May 20, 2020 9:03 AM

An employee can withdraw funds from EPF account on retirement or can prematurely withdraw money for reasons like job loss, marriage, education, purchase or construct-ion of house, medical emergency.

However, long term capital loss from sale of shares can only be set off against long term capital gains from sale of Gold ETF.However, long term capital loss from sale of shares can only be set off against long term capital gains from sale of Gold ETF.

By Chirag Nangia

l I have lost a lot of money in stocks due to the market crash. Can I offset the loss with the gains that I have made in gold ETF?
—Anurag Mehta
Equity shares are classified as long- term if they are held for a period of more than 12 months. However, gold ETF is classified as long-term if it is held for a period more than 36 months. Short term capital loss from sale of shares can be set off against short/ long term capital gains from gold ETF. However, long term capital loss from sale of shares can only be set off against long term capital gains from sale of Gold ETF.

I am an ex-employee of a bank and want to withdraw money from my EPF account. How can I withdraw money from EPF? Also, when I go to the UAN site I get the message that “Present employer has not made payment in your PF account”. What does it mean?
—A P Baig
An employee can withdraw funds from EPF account on retirement or can prematurely withdraw money for reasons like job loss, marriage, education, purchase or construct-ion of house, medical emergency. However, these withdrawals are subject to certain limits and conditions. As a relief measure against Covid-19, EPFO has announced that employees who contribute to EPF can withdraw up to 75% of the account balance or three months’ basic salary and dearness allowance, whichever is lower, as non-refundable advance without levy of income tax. You must coordinate with the EPFO and employer regarding the issue and then reapply for withdrawal from EPFO electronically.

My daughter lives and works in USA. She files her tax returns in the US and has no income in India. Last year, she purchased a residential apartment with housing loan. She deposited 1% TDS as per requirements and now she has received a query from income tax department asking to file returns or explain reason for non-filing. What should she do?
—Alok Kapur
Your daughter may file a letter with the department stating that the funds from which the property was acquired were earned entirely outside India. Further, whatever income is arising in India does not exceed taxable limits and thus she is not required to file ITR.

The writer is director, Nangia Andersen Consulting. Send your queries to fepersonalfinance@expressindia.com

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