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NRI Taxation on STCG and LTCG

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Dimpy

Accounts

96 Points Posted on 24 July 2023

Can NRI set off long term capital gain against short term capital gain?

Also if any unabsorbed capital loss can be carried forward? if yes, for how many years in case of NRI?

Replies (2)

Quick Summary

This discussion clarifies how Non-Resident Indians (NRIs) can manage capital gains tax. It explains that short-term capital losses (STCL) can be set off against both short-term capital gains (STCG) and long-term capital gains (LTCG). However, long-term capital losses (LTCL) can only be offset against long-term capital gains (LTCG). Unabsorbed capital losses can be carried forward for up to eight years, provided the tax return is filed by the due date. It's also noted that NRIs cannot utilise the basic exemption limit against gains covered under sections 111A and 112A.

jagdish chhugani

engineer

833 Points Posted on 30 July 2023

For NRI ITR is same as normal resistant

Read

Short-term capital loss can be adjusted against long-term capital gains as well as short-term capital gains. Such loss can be carried forward for eight years immediately succeeding the year in which the loss is incurred.

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 Gain

Aashok Kumar Sharma

Finance/Compliance Consultant

75663 Points Posted on 08 November 2026

NRI capital gains set-off:
• NRIs follow the same set-off rules: STCL can be set off against STCG and LTCG; LTCL only against LTCG. Gains themselves aren't set off against each other.
• "Set off LTCG against STCG": gains aren't set off against each other. Only losses are set off against gains.
• Unabsorbed capital losses are carried forward 8 years (file by the due date).
• NRIs can't use the basic exemption against 111A/112A gains.