Business Loss & Capital Gain/Loss Set off Sequence

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This query is : Resolved

Quick Summary

This discussion clarifies the order in which business losses and capital losses should be set off against capital gains. It explains that intra-head losses are adjusted first, meaning short-term capital losses are considered before long-term capital losses. The advice also touches upon the sequence for setting off different rates of long-term capital gains.

Ajaykumar Chaudhary

Ajaykumar Chaudhary (Querist)

13 July 2023 Dear Experts,

I have a confusion over Loss set of in Computation of Income through Intra & Inter Heads. Herewith I mention scenario as below for your expert advise.
Scenario-1
If have Business Loss
If have Short Term Capital Loss @ 15% &
If have Long Term Capital Gain (10% or 20% no matter)

Q-1 Will Business Loss (Higher Tax Rate) be adjusted first or Short Term Capital Loss @ 15%?
Q-2 Short Term Capital Loss is permitted to Set off with Long Term Capital Gain so will ST & LT be considered under Inter Head or intra Head?

Scenario-2
If have Short Term Capital Loss @15% &
If have Long Term Capital Gain with 10% and 20% both

Q-1 Will the LTCG @20% adjusted first or LTGC@10%?

Thanks in anticipation for your valuable advises.