Short term capital loss

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 Dear Expert,

Please tell me Short Term Capital Loss can set-off for how many years??

Thanks In advance......

Amol S Joglekar

Amol S Joglekar (Expert)

02 August 2012 4 years. (Provided it is carried forward properly)

Message likes : 1 times

CA Ghanshyam Joshi

CA Ghanshyam Joshi (Expert)

02 August 2012 10.12 LOSSES UNDER THE HEAD ‘CAPITAL GAINS’ [SECTION 74 ]
Section 74 provides that where for any assessment year, the net result under the head ‘Capital gains’ is short term capital loss or long term capital loss, the loss shall be carried forward to the following assessment year to be set off in the following manner:
(i) Where the loss so carried forward is a short term capital loss, it shall be set off against any capital gains, short term or long term, arising in that year.
(ii) Where the loss so carried forward is a long term capital loss, it shall be set off only against long term capital gain arising in that year.
(iii) Net loss under the head capital gains cannot be set off against income under any other head.
(iv) Any unabsorbed loss shall be carried forward to the following assessment year up to a maximum of 8 assessment years immediately succeeding the assessment year for which the loss was first computed.

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