As per the provisions of the Income Tax Act, extended term capital loss can only be set off against extended term capital get.
I sold HDFC Hybrid Debt Fund and created Rs 1,50,000 capital gains. I have created capital loss on several listed shares. Can I adjust the get on an unlisted fund with listed shares? —Alexander James Moraes For tax purposes, listed shares are necessary to be classified as either quick-term or extended-term based on the period of holding. Listed equity shares or units of equity-oriented funds are classified as extended-term capital assets if they are held for a period more than 12 months, else they are categorised as quick-term. Likewise, debt funds are classified as quick term if held for a period significantly less than 36 months, else the similar are treated as extended-term. As per the provisions of the Income Tax Act, extended term capital loss can only be set off against extended term capital get. However, quick term capital losses can be set-off against each quick/ extended term capital get. Therefore, based on the classification based on period of holding, you might set off losses accordingly.
l Can I claim Rs 50 lakh tax exemption below Section 54EC and Rs 50 lakh below Section 54EE each? —Pankaj Gupta An assessee can claim deduction of up to Rs 50 lakh below Section 54EC, by investing gains from sale of extended-term asset in specified assets like bonds of RECL/NHAI, inside a period of six months, in that economic year and the next. He can claim tax exemption on such capital gains if invested in specified funds below Section 54EE up to Rs 50 lakh in the economic year and the next year. As per the provisions of the law, Section 54EC and Section 54EE are not mutually exclusive. No restriction has been imposed in respect of claiming exemption below each the sections. Therefore, you might claim deduction below each sections for Rs 50 lakh every.
l My final EPF contribution was in August 2019. I have received EPF interest for FY 2019-20. My query is will the EPF interest be taxable for the complete FY 2019-20 or will the EPF interest be taxable for the period September 2019 to March 2020 only? —Arup Majumdar As per a current judicial pronouncement, interest on EPF to the extent of the quantity earned post retirement has been held to be taxable. Conservatively, you might offer you the quantity of interest earned post retirement to tax.
The writer is director, Nangia Andersen India. Send your queries to