CAF-2 · Chapter 9 · Question 15 of 15
A taxpayer sustains a loss on the disposal of listed securities (settled via NCCPL). Under the rules for Section 37A, what is the maximum carry-forward period for this specific loss?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) Up to 3 immediately succeeding tax years.
Explanation
Loss sustained by a person on the disposal of securities (under Sec 37A) can only be carried forward up to three (3) tax years immediately succeeding the tax year for which the loss was first computed. (General capital losses under Section 59 have a 6-year limit).
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