In case of a capital loss (short-term/long-term), for what duration can the same be carried forward by investors?
A capital loss (short-term/long-term) can be carried forward for a maximum period of 8 years from the assessment year in which the loss was first incurred. A short-term capital loss can be set off against any capital gain (long-term and short-term). However, a long-term capital loss can be set off only against a long-term capital gain. What is the STT (Securities Transaction Tax) and how does it work? Are investments made prior to the STT regime eligible for the long-term capital gains tax waiver as well or is this facility available only to post – STT investments? The Securities Transaction Tax has been introduced by Chapter VII of the Finance Act (No.2) Act, 2004. This provides for a levy of a transaction tax on the value of certain transactions. These transactions include the purchase and sale of equity shares in a company, purchase and sale of units of an equity growth fund sale of a unit of an equity growth fund to the mutual fund and sale of a derivative. The transaction tax will
