Capital gains Loss

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This discussion addresses whether a short-term capital gain from a debt-oriented liquid fund can be offset against a long-term capital loss from an equity-oriented fund. The general rule is that long-term capital losses can only be set off against long-term capital gains. There's also a query about how the ITR 2 software automatically adjusts short-term capital losses against long-term capital losses, which seems counterintuitive.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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03 September 2021 Assessee has short term capital gain from sale of Debt Oriented Liquid fund
He also has long term capital loss on sale of Equity Oriented fund
Can the short term capital gain from sale of Debt Oriented Liquid fund be set off against long term capital loss on sale of Equity Oriented fund

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 September 2021 No. Long-term capital loss will only be adjusted towards long-term capital gains.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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04 September 2021 I suppose short term capital loss on sale of Equity Oriented fund is taxable at Normal rates i have filled details in schedule Caital gains under "Listed securities (other than a unit) or zero coupon bonds where proviso under section 112(1) is applicable"
and then ITR 2 is automatically adjusting loss under this head against long term capital loss u/s 112A

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 September 2021 Quote ..
""" I suppose short term capital loss on sale of Equity Oriented fund is taxable at Normal rates i have filled details in schedule Caital gains under "Listed securities (other than a unit) or zero coupon bonds where proviso under section 112(1) is applicable" and then ITR 2 is automatically adjusting loss under this head against long term capital loss u/s 112A."""

How can I suppose STCL adjustment automatically with LTCL?
Both being Losses.

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