Capital loss in mutual funds and equity

This discussion clarifies how to carry forward capital losses from mutual funds and equity investments. Both short-term and long-term capital losses can be carried forward for up to 8 assessment years. However, these losses can only be set off against capital gains income, not salary income. Short-term capital losses can be offset against short-term or long-term capital gains, while long-term capital losses can only be offset against long-term capital gains. It's crucial to report these losses in your current Income Tax Return (ITR) even if you plan to set them off in future years.