Long term capital gain set off

If you have incurred a long term capital loss on selling shares or equity mutual fund units after 31.3.2018 then you can set them off against any LTCG , as profits/gains on long term shares or equity funds are now taxable in excess of Rs. 1 lakh; this amendment was announced in Budget 2018.  Also, you can also carry forward these losses for setting off in later years up to 8 assessment years.

Prior to 31.03.2018, there was no tax on Long Term Gains on Shares & Equity Funds, therefore Long Term Capital Loss on Shares and Equity Funds was considered as a dead loss. Therefore, the same was not set off or carried forward.

Shares and Equity Funds are long term capital assets when held for more than 12 months.