Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Capital loss in mutual funds and equity

Mahender Singh (STUDENT) (142 Points)

03 January 2021

I have short term and long term capital loss in current fy. Can I carry forward it. please explain to how many years I can carry forward it. can both long and short term loss both can be carry forward??

Reply
Follow
Share

15 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 03 January 2021

Any short term or long term loss can be carry forward for 8 assessment years and you can set off such loss against other heads of income

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Mahender Singh (STUDENT) (142 Points)
Replied 03 January 2021

Can I deduct those losses from salary to reduce taxable income???

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 03 January 2021

No you cannot set off against salary income

Mahender Singh (STUDENT) (142 Points)
Replied 03 January 2021

So please which heads of income?? also can I set off amount in parts in different years or have to set off iñ one go??

Sumit Shukla (378 Points)
Replied 03 January 2021

STCL can be set off against STCG & LTCG
where as LTCL can be sett off against LTCG only.

Upgrade to CAclubindia Pro. Subscribe Now!

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 03 January 2021

No, no there was a mistake,
you can set off any capital loss against only such income from capital gain and you can set off from other assessment years also

Mahender Singh (STUDENT) (142 Points)
Replied 03 January 2021

Does I need to mention losses in current itr even if I want to set off them in later years

Sumit Shukla (378 Points)
Replied 03 January 2021

Yes required it will be carry forward to next Assessment years

1 Like

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 03 January 2021

Yes you have to mention

1 Like

Smit Shah (524 Points)
Replied 03 January 2021

Losses under other head with some exceptions can be set off against STCG or LTCG but STCL can be against STCG and LTCG and LTCL can be adjusted against only LTCG.