Set-off of gains against losses

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:


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