08 December 2021
I have long term capital gains in equity for FY 20-21 of Rs 3 lakh. I have brought forward equity long term losses from previous year of Rs 5 lakhs. Question- For filing returns of FY 20-21, do I have to first setoff capital losses against capital gains? Or can I first take LTCG exemption of Rs 1 lakh and then setoff remaining 2 lakhs gains against prev year losses? If I first setoff losses against gains, then I am not able to take advantage of LTCG exemption of Rs 1 lakh. Please guide.