Hi
1. Yes, the losses of mutual funds can be set off against the capital gain of the property.
2. I assume you have incurred these expenses in FY 19-20 only. Hence there would be no indexation. It would be reported as transfer expenses.
Can I offset capital gains from Sale of property (vacant site) against losses from Mutual Funds?
I had taken a vacant land in March 2013 for INR 11.5 Lakhs - and sold it in Feb 2020 for INR 21 Lakhs After indexation, the profit turns out to be about INR 4.3 Lakhs. Now, I have invested in mutual funds over the years and today it is giving me a net loss (Both long term and short term included) of about INT 4.3 Lakhs. Query 1: If I sell all mutual funds and report loss of of 4.3 Lakhs, can I offset it with captial gains tax from sale of property? I have also paid property tax of about INR 20,000 and spent about INR 50,000 towards advertising (for sale) on my property Query 2: Can I include these property tax and advertising expenses in initial cost of aquisition to lower by capital gains tax?
Asked 4 years ago in Capital Gains Tax
Property tax cannot be directly related to sale of property but advertisement can be considered as directly related to sale and hence deducted from sale price if you have valid proof.
Yes you can adjust long term and short term capital loss from long term capital gain.
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Thank you
Hello,
Yes, the set-off would be available against the long term capital gain.
Advertisement Expenses would be regarded as Transfer Expenses to be deducted from the sale consideration received with no indexation.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Hi,
1. Yes, you can set off.
2. No indexation benefit is available on transfer expenses. It will be reduced from sales consideration.
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