Regarding capital losses

capital loss can be set off only on capitals gains. u cannot deduct it from taxable income

short term capital loss can be set of on both long term and short term capital gain but long term capital loss can be set off only against long term capital gain

u can carry forward the capital loss upto 8 years. with in that 8 year if u transfer any capital asset and got capital gain means u can set off that capital loss with this capital gain.

Hello Varun,

Thank you very much for your clarification.  Just a couple of follow-up questions:

1.  What happens to the carry forward losses (CFL), if I don't get any capital gains in the next 8 years?  For example, I have got the losses because of the sharess given by my previous employer. Now, my current employer doesn't award any shares.  And I believe not every employer would give the shares.

2.  If we delay paying the tax, govt. will recover interest on the tax as well as fine for delaying the payment as well.  Similar to this, would the interest be considered on CFL during the tax calculations in case of capital gains during future years?  If yes, then only rules are fair enough.  If no, rules are unfair.

Thanks,

1. If u didnt  get any capital gain during 8 years means u cannot claim that loss.

2.No

Varun, Thank you very much for your time in helping me to get more insight into capital gains :)

Hello Rajkumar ji and  Mr. Varun,

I agree with Mr Varun. and thanks varun you have clearfied this matter in simply.