Business loss 27 lacs short term capital gain 25 lacs long term capital gain 25 lacs.

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Generally, business losses cannot be directly set off against short-term or long-term capital gains. However, there's a specific, narrow exception. If a short-term capital gain arises from the sale of a business asset and is treated as such under special tax provisions (like Section 50), then brought-forward business losses might be applicable. This is a complex, case-specific situation and not a standard rule.

P N RAJAN

P N RAJAN (Querist)

27 October 2023 Can business losses be set off against short-term capital gains and long-term capital gains.

RAJA P M

RAJA P M (Expert)

28 October 2023 No, Can't set off.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

17 September 2025 There is a narrow exception: if the short-term capital gain arises from the sale of a business asset and is deemed as such under special provisions (Section 50), as clarified in some judicial cases. In cases where the activity leading to short-term capital gain is intrinsically a business activity (such as the sale of business assets), brought-forward business losses can sometimes be set off against short-term capital gains arising from such transactions, but this is highly case-specific and not a general rule for all business losses and capital gains.

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