Long term capital loss against gain

[anil kalia]

A is having long term capital loss on transactions of sale shares not covered under the provisions of section 10(38) and he is also having long term capital gain from transactions of sale of shares covered under the provisions of section 10(38) of the Income Tax. Please advice : Whether the long term capital loss incurred on sale of shares transactions not covered u/s 10(38) will be set off aganist long term capital gain from transactions covered u/s 10(38) or will be allowed to be carried forward as per the provsions of Income Tax.

AI Summary

Long-term capital loss from non-section 10(38) shares can't offset tax-free gains under section 10(38). Optional loss set-off under section 70. A user inquired whether a long-term capital loss from share transactions not covered under section 10(38) of the Income Tax Act can be set off against long-term capital gains from transactions that are covered under section 10(38). The response indicated that income exempt under section 10(38) is not included in the computation of Gross Total Income (GTI), so the long-term capital loss cannot be set off against tax-free long-term capital gains. The response also noted that under section 70, the entitlement to set off losses is optional for the assessee.