Can we get tax exemption if we can show the losses incurred in stock market?

POSTED BY Jagoinvestor ON December 5, 2010 8:26 pm COMMENTS (5)

If someone has incurred huge losses in stock market and is a salaried employee? How can he claim for tax exemption?

5 replies on this article “Can we get tax exemption if we can show the losses incurred in stock market?”

  1. sidrana7 says:


    from what is said I interpret that short or long term is no value to means, its the cumulative losses against cumulative profits in a single 8 year span.


  2. prabeesh says:

    one more question

    Let me say i bought some share and sold it on loss after 1 year and the next year i made some short term profits on some stocks..can i use this long term loss to adjust with my short term gains? may be naive question ,just want to know is that any different

    1. Ramesh Mangal says:

      Long term capital gains/losses and short-term capital gains/losses are different compartments. And cannot be clubbed together.

      Also you cannot take your losses backwards and adjust with gains there.

      Since LTCG is taxed at zero, long term capital losses are also zero for taxation purposes!!


  3. Siva - Fundsindia IFA says:

    Manish rightly said, you can adjust your losses only against your Capital Gains spreading over 8 Years. Not against your salary income.


  4. If you have made losses in shares , there you can adjust the losses against the profits in next 8 yrs .

    Its not the case that you can just get tax exemption for that amount, but you can deduct that much loss from your profits .

    For example , if you have made a loss of 1 lac , and profit of 2 lacs , you can write off that 1 lac loss with 2 lac profit and just show final 1 lac and pay tax on just 1 lac only .

    For details read :


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