Set off of LTCL against STCG under section 536(2n)

Sec 536 (2) (n)....any amount of loss under the head capital gains, whether related to a long-term capital asset or a short term capital asset, referred to in section 74 of the repealed Income-tax Act, brought forward from the tax year beginning before the 1st April, 2026 had the Income-tax Act, 1961 (43 of 1961) not been repealed, shall be carried forward and set off, in accordance with the manner provided in the repealed Income-tax Act, against the income under the head “Capital gains” computed under this Act for any tax year beginning on or after the 1st April, 2026 upto eight financial years immediately succeeding the financial year in which such loss was first computed under the repealed Income-tax Act;

It allows to carry forward and set off the losses as per old sec 74 of IT act, 1961. But does not permit any deviation from it. As per earlier rules, LTCL is only set off against LTCG and not against STCG.