LTCG Loss Adjustment: Carry Forward & Tax Filing Explained

This query is : Resolved

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This discussion clarifies how to handle Long Term Capital Gains (LTCG) losses carried forward from previous tax years. It explains that losses from AY2019-20 and AY2020-21 should be reported separately in the Sch CFL section of your tax filing. The advice confirms that carried forward LTCG losses will indeed adjust against current year's LTCG, even if the current year's gains are tax-free up to a certain limit. It's also stressed that you cannot skip reporting these losses in the current year.

Proloy Samaradivakera

Proloy Samaradivakera (Querist)
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28 October 2021 In AY2019-20, the LTCG loss was 2500 to be carried forward to next year. However in AY2020-21, again the LTCG loss was 15100 with the result that 2500 could not be adjusted in AY2020-21 filing. In Sch CFL it mentioned 'total loss carried forward for future years' as 17600.
1) Do I need to enter the AY2019-20 and AY2020-21 separately or put the figure of Rs 17600/- under AY2020-21 with filing date in Sch CFL this year?
In AY2021-22, the LTCG is 50000 which is tax free upto Rs 1 lac.
2) If I fill up Sch CFL with carried forward LTCG losses while filing tax this year , will it adjust with LTCG of 50000 even though, this LTCG amount is tax free or it will not adjust with Rs 50000/- and will be carried forward again to next year?
3) Or can I skip entering in Sch CFL, the losses this year and enter it next year with the losses carried forward in AY2020-21?