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

I have 2 lakhs Long Term Capital Loss against losses made on sale of shares of listed company and 3 lakhs Short Term Capital Gain against profit made on sale of shares of listed company. Need help on below 2 questions:

1. Can the Long Term Capital Loss be used to set off Short Term Capital Gain?

2. If not, can Long Term Capital Loss be carried forward to next year for adjusting against potential Long Term Capital Gain of subsequent year?

 

 

Replies (2)
Quick Summary
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.

1) You can  not set  off  Long  Term capital  loss  against  Short  term Capital  Gain . please  refer section 74 of  Income Tax act  1961

 2) you can  carried   forward  long  term capital  loss   up to  8  years  to adjust  against long term capital  gain    , However  return  of loss  must  be  filed  in time  .

please  confirm with  others also. 

Loss from transfer of a short term Capital Asset can be set off against gain from transfer of any other capital asset (Long Term or Short Term) in the same year.

 Loss from transfer of a Long term Capital Asset can be set off against gain from transfer of any other long term Capital Asset in the same year.

You can definitely carry forward of long term or short term capital loss to the extent not absorbed and very well set off in next or subsequent years.

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