Stcg setoff

Hello,

My father is a retired senior citizen. For last financial year, his only income is Rs. 1.53 lakhs from bank FD and Rs. 4200 from STCG from shares.

He is carrying forward STCL from shares of Rs. 7500 since last two years.

Since his total income is below exemption limit, while filing ITR, does he need to setoff STCG of 4200 against STCL of 7500 or he can carry forward STCL of 7500 to next year and simply deduct Rs. 4200 from 1.53 lakhs.

Please guide.