Set-off of gains against losses

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