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Set off of losses in short term cg in equity against long term cg without indexation

13 March 2023

Can long term capital gain on sale of equity mutual fund without indexation be set off against short term capital loss on sale of equities within 1 year?

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3 Replies

CA Rakesh Ishi (Working at Private Company) (8432 Points)
Replied 13 March 2023

Yes, long-term capital gains (LTCG) on the sale of equity mutual funds without indexation can be set off against short-term capital losses (STCL) on the sale of equities within one year.

According to the Income Tax Act of India, short-term capital losses can be set off against both short-term capital gains and long-term capital gains, whereas long-term capital losses can be set off only against long-term capital gains

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Lotus Agrawal (Practice) (1361 Points)
Replied 14 March 2023

Yes. It is possible.

Manjunath Sowmya (17 Points)
Replied 25 March 2023

Can long term capital gain on sale of equity mutual fund without indexation be set off against long term capital loss with indexation , ie sale of debt mutual funds after being held for more than 3 years?