Can we set off Long Term Capital Loss on sale of listed shares against Short Term Capital Gain

This discussion clarifies the rules for setting off capital losses against capital gains. You cannot directly offset a Long Term Capital Loss (LTCL) against a Short Term Capital Gain (STCG). However, LTCL can be carried forward for up to eight years to offset future Long Term Capital Gains, provided the return of loss is filed on time. Conversely, Short Term Capital Loss can be set off against any capital gain, whether long-term or short-term, in the same tax year.