Computation of long-term capital gains tax: set-off of losses reduces taxable gains before flat-rate tax applies. The circular clarifies that in computing tax under the statutory flat-rate mechanism for long-term capital gains, the Income-tax Act's set-off and aggregation rules are applied first so that losses from other heads reduce long-term capital gains; only the residual amount included in total income is taxable at the prescribed flat rate.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Computation of long-term capital gains tax: set-off of losses reduces taxable gains before flat-rate tax applies.
The circular clarifies that in computing tax under the statutory flat-rate mechanism for long-term capital gains, the Income-tax Act's set-off and aggregation rules are applied first so that losses from other heads reduce long-term capital gains; only the residual amount included in total income is taxable at the prescribed flat rate.
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