https://www.taxtmi.com/caselaws?id=461833 Treaty-exempt long-term capital gains under Article 13(4) of the India-Mauritius tax treaty are outside the taxable income base, so they cannot be first reduced by brought forward capital losses under section 74 of the Income-tax Act. The adjustment mechanism applies only where there is taxable capital gain, making taxable gains a precondition for set-off of carried forward losses. On that reasoning, treaty-exempt grandfathered gains could not absorb prior losses, and the losses could be set off only against non-grandfathered taxable capital gains. en-us Thu, 20 Jun 2024 00:00:00 +0530 Fri, 02 May 2025 08:53:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461833 Treaty-exempt long-term capital gains under Article 13(4) of the India-Mauritius tax treaty are outside the taxable income base, so they cannot be first reduced by brought forward capital losses under section 74 of the Income-tax Act. The adjustment mechanism applies only where there is taxable capital gain, making taxable gains a precondition for set-off of carried forward losses. On that reasoning, treaty-exempt grandfathered gains could not absorb prior losses, and the losses could be set off only against non-grandfathered taxable capital gains. Case-Laws Income Tax Thu, 20 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461833