Set-off of gains against losses
The provisions of the Income-tax Act, 1961 to offset the Losses against the Gains in the following situation:-

  • Set off of gains against loss in case of sale on different dates in the same Financial Year.

    The Gains earned on transfer of capital assets should be set off against Losses incurred during the same financial year (i.e. during April – March) subject to the provisions of Income-tax Act,1961.

  • Carry Forward of Unabsorbed Capital Loss in subsequent year.

    If the loss cannot be set off or entirely be setoff in the same year, it is allowed to be carried forward to subsequent year provided return of income is filled within the prescribed time limit.