Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Inter-intra head loss sett off

Others 459 views 2 replies

shreya vora

69 Points Posted on 31 January 2024

can aseessee adjust Long term capital loss on sale of listed company shares against the long term capital gain on sale of property ?

if yes kindly provide section reference.

As per my understanding assessee can set off the losses and can c/f unabsorbed losses if any upto 8 years.

correct me if I am wrong.

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9615 Points Posted on 31 January 2024

Set off of Capital Losses

The Income Tax does not allow loss under the head capital gains to be set off against any income from other heads – this can be only set off within the ‘Capital Gains’ head.

Long Term Capital Loss can be set off only against Long Term Capital Gains.
Short Term Capital Losses are allowed to be set off against both Long Term Gains and Short Term Gains.

Carry Forward of Losses

Fortunately, if you are not able to set off your entire capital loss in the same year, both short term and long term loss can be carried forward for 8 assessment years immediately following the assessment year in which the loss was first computed.

If capital losses have arisen from a business, such losses are allowed to be carried forward and carrying on of this business is not compulsory.