Setoff and carryforward of losses utilisation

Hello,

Dear professionals

I'm here with query regarding set-off and carry forward of losses

A.Y 2020-21 Long term Capital loss 1,20,000 and Short term Capital loss of Rs. 65000/- so Return filed during that A.Y with in due date so it can be carryforward to succeeding 8 A.Y's. and  

During A.Y 2021-22 i have Long term Capital Gain u/s 112A Rs.25000, i am eligible for the Rs.1,00,000/- under section 112A  and Short term Capital Gain of Rs.55000/- and other income is 3,00,000/- so my Total income is Below 5,00,000/-, so my tax liability is4,000/- this assessment year and i am eligible for the Rebate U/s87A 12,500/- no need to pay any tax amount

but if i am entering brought forward of losses of A.Y 2020-21 it's sett offing automatically with that current A.Y Gains so if i didn't entered the brought forward details in current A.Y tax return and can i eligible to claim to brought forward losses during A.Y 2022-23 because such losses can be carry forward to next 8 A.Y's right.

kindly spare your valuable time for my query and give me some clarification regarding this.

if you any notification or circular about this kindly share me 

Thanking you

regards

Ajay guptha

Replies (2)
Quick Summary
This discussion explores the rules around setting off and carrying forward capital losses. The original poster is asking if they can claim brought forward losses from AY 2020-21 in AY 2022-23, even if they didn't utilise them in AY 2021-22. A response clarifies that intra-head adjustments are made first, followed by carry-forward losses, with the Section 112A exemption applied during tax calculation.

The Manner of utilization is that first intra head adjustments of the same year takes place. Then carry forward losses come into picture. the long term capital gain exemption upto 1 lakh comes into play only at the time of tax calculation.
Can you please confirm the section which stipulates the manner of adjustments you state herein?

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