Short term capital loss

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ASHISH (Querist)
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17 February 2019 I AM HAVING A SHORT TERM CAPITAL LOSS ON SHARES OF 900000 (9 LAKH) AND LONG TERM CAPITAL LOSS OF 100000 IN F/Y 18-19
CAN IT BE CARRIED FORWARD
NEXT YEAR CAN IT BE SET OFF AGAINST ANY INCOME

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 February 2019 yes it can be carried forward. But the set off would be available only against income of similar nature ie the income that is taxable under same head - STCG and LTCG respectively in your case.

CA ALOK KUMAR

CA ALOK KUMAR (Expert)
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18 February 2019 Set off of loss under the same head of income is governed under section 70 of Income tax act,1961. Long term capital Loss can only be set off against Long term Capital Gain and can not be set off against short term capital gain. Unabsorbed Long term capital loss can be carried forward and set off against Long term capital gain in subsequent years. However short term capital loss can be set off against Long term capital Gain and unabsorbed short term capital loss can be carried forward and set off in subsequent years. For further clarification you may login to www.wealth4india.com or Speak to our expert @9266242424

ASHISH

ASHISH (Querist)
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26 February 2019 FOR HOW MANY YEARS CAN I CARRY IT FORWARD TILL IT LAPSES
ARE THERE ANY CONDITIONS TO BE MET FOR CARRY FORWARD
IF NEXT YEAR I HAVE SHORT TERM CAPITAL GAIN AND NO LONG TERM CAPITAL GAIN WILL LONG TERM CAPITAL LOSS LAPSE IF I DONT SET IT OFF WITH SHORT TERM CAPITAL GAIN

Asha Kanta Sharma online

Asha Kanta Sharma online

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25 July 2025 Here’s a clear summary on carry forward and set off of short term and long term capital losses under Income Tax laws:

1. Set off of Capital Losses in the Same Year
Loss Type Can be set off against
Short Term Capital Loss (STCL) Short Term Capital Gain (STCG) + Long Term Capital Gain (LTCG)
Long Term Capital Loss (LTCL) Only Long Term Capital Gain (LTCG)

So STCL can be set off against both STCG and LTCG.

LTCL can be set off only against LTCG.

2. Carry Forward of Capital Losses
Both STCL and LTCL can be carried forward for 8 assessment years immediately following the assessment year in which loss was incurred.

To carry forward the loss, you must file your income tax return within the due date.

3. Set off in Subsequent Years
Loss Type Set off allowed against
Short Term Capital Loss Can be set off against STCG and LTCG in future years
Long Term Capital Loss Can be set off only against LTCG in future years

4. If you have only STCG but no LTCG next year
You cannot set off LTCL against STCG.

The LTCL will continue to carry forward up to 8 years and you can set it off only in years where LTCG arises.

If no LTCG arises during this period, LTCL expires after 8 years.

5. Conditions for Carry Forward
Income tax return must be filed within due date.

Loss is to be declared correctly in the return.

Loss will be forfeited if return is filed late.

Summary Table
Loss Type Set off in same year Carry Forward Period Set off in future years
Short Term Capital Loss Against STCG & LTCG 8 years Against STCG & LTCG
Long Term Capital Loss Against LTCG only 8 years Against LTCG only

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