Hi Aaditya, thanks for your response. So what I understand from your explanation is that if ever I make a sale of that script within a year, though I make new purchases, i will not be able to benefit from long term capital gains. And in fact most of the traders who regularly trade would seldom have long term capital gains.
So my next question is can you get a set-off for short term capital loss against long term capital gains and second is there any advantage if you get a set-off for long term capital loss against short term capital gains.
Regarding advantage, it's that LTCG is exempt whereas STCG is taxable @ 15%. So, at first you should set-off STCL against STCG and remainder with LTCG, in order to reduce the tax liability.
On a side thought, wondering if I manage different portfolios and don`t touch the shares in portfolio1 for 1 yr but do trade in that script during the year in another portfolio, then would I be eligible to benefit from long term capital gains ? The assessment is done on individual basis or the portfolio basis ?
In that case, you and your family members are two different assessee. So no problem, you would get the benefit of LTCG.