Set-off and Carry forward of Losses:
As per the provisions of the Income-tax Act, 1961 the Loss incurred on sale/transfer of Immovable property (and other capital assets) can be set-off as follows:
Type of Capital Loss | Income which can be Set-off |
1. Capital Loss -Short Term -Long Term | Against any Long term Capital Gain and any Short term 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 10/2024