Capital loss

Loss  from  capital  Gain  and set- off - section 74 of the Income Act  1961 

Short-term capital  loss can be set off against any capital gain income Long term or Short  term  in the  same assessment year ,. Such loss can be set off only against capital Gain income not  against  any other head of income .  Balance short -term capital loss if any can be carried  forward up to eight assessment years  ,In the subsequent  years also It can be set off against  any capital gain Income . 

Long term capital loss can be set off in the same assessment year as well as in the subsequent  assessment  years (in case of carry forward) only  against  long term capital  gain income . carry -forward of loss is allowed up to eight  assessment years .