Capital gain set off rules ?

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Balarama.p (Querist)
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03 October 2012 • Can Long term capital loss from sale of shares and mutual funds (STT paid) be adjusted against the LTCG from sale of plot???
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Can Short term capital loss from sale of shares and mutual funds (STT paid) be adjusted against the LTCG from sale of plot ??

PARDEEP KUMAR AGGARWAL

PARDEEP KUMAR AGGARWAL (Expert)
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04 October 2012 As per Income Tax rules,
Short Term Capital Loss can be carried forward upto next 8 financial years and can be set off from LTCG or STCG but Long Term Capital loss can be set off only from LTCG. Carrying forward of LTCL is same as that of STCL.

Rathin Roy

Rathin Roy (Expert)
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05 October 2012 IN answer to your question, only the first event is possible since the nature of the Long-term gain or loss is not relevant - the only restriction is that Long-term Capital Loss may be set-off against Long-term gains only and if not fully adjusted in the same previous year may be carried forward upto eight years, but again for adjustment against Long-term Capital Gains only.

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