Income tax query

• For Computation & Loss Adjustment: You must use the actual taxable capital gain figures as mandated by the law (unindexed ₹52,00,000/- for the property plus ₹6,75,000/- for jewelry, assuming indexation is unavailable for post-2023/2024 real estate).

• Final Calculation: The old long-term loss of ₹4,95,000/- will be deducted directly from the aggregate actual long-term capital gains.

The set-off happens on actual taxable capital gains, not the indexed intermediate figures.

Here is how it works in Schedule BFLA (Brought Forward Loss Adjustment) in ITR-2:

For your property, you compute the LTCG under both methods (12.5% without indexation, 20% with indexation) and the portal uses whichever gives a lower tax for property acquired before July 23, 2024. Let us say the lower method gives you a taxable LTCG of Rs X from the property.

Your set-off order:
1. Brought-forward long-term loss (Rs 4.95L) can only be set off against LONG-TERM capital gains, not short-term.
2. The set-off goes against all your LTCG in aggregate - property + jewelry in your case.
3. After set-off, the remaining taxable LTCG is what flows into your income tax calculation.

So if your aggregate LTCG is, say, Rs 52L + Rs 6.75L = Rs 58.75L and the old loss is Rs 4.95L, your net LTCG after set-off is Rs 53.8L.

One important note: the LTCL can only be carried forward and set off if it was disclosed in the ITR for the year it arose. If it was not, it cannot be claimed now.

For the full rate table and the pre/post July 23, 2024 treatment of property gains, this [capital gains tax rates guide for AY 2026-27](https://taxgarden.in/blog/capital-gains-tax-rates-asset-class-ready-reckoner-india-ay-2026-27) covers the indexed vs unindexed computation with worked examples.