02 April 2009
Well, you can set off capital losses only against capital gains and not against any other income. you carry forward these losses to next year and so on for eight years. In the subsequent years, if you earn any capital gain, you can set off these losses and thus optimise your tax liability. Please note that taxable long-term capital gain can be set off only against long-term capital loss, whereas short-term capital loss can be set-off against both short-term capital gain as well as taxable long-term capital gains.
03 April 2009
Short term loss can be set off with in same year against long term. But carried forward short term loss can be set off agaist short term loss only.
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