As per the provisions of the Income-tax Act, 1961 the Capital Gain/ Loss incurred on sale/transfer of Immovable
property (and other capital assets) can be set-off as follows:
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Type of Capital Gain / Loss
|
Income / Loss which can be Set-off
|
|
1. Capital Gain:
-Short Term
-Long Term
|
Against any Loss except Long Term Capital Loss
Against any Loss
|
|
2. Capital Loss
-Short Term
-Long Term
|
Against any Capital Gain
Only against Long term Capital Gain
|
Further, if,
in a particular Financial Year (FY), amount of Short/Long Term Capital loss is
not fully set-off against income/ gain due to inadequacy of income/ gain, such
loss may be carried forward to subsequent 8 FYs provided Return of Income (ROI)
is filed within prescribed time limit.
Updated 10/2022