Tax Implication of selling property in loss

Page no : 2

Ankur Jain (Student Others) (143 Points)
Replied 11 June 2025

Hi Ranjan,

But this property loss set off can not be done against salary head right ? So technically i would just report it . Is not the right understanding?

Ranjan (Mr) (365 Points)
Replied 11 June 2025

Hi Ankur

Definitely you have to report it.

Even Capital Gain is treated as an income by the Income Tax Department, although taxation rules are different from other income.

The loss is a negative income. I do not know whether the Indian income tax laws allow this negative income to be setoff from the other incomes for the FY. Someone more expert needs to contribute.

Ranjan (Mr) (365 Points)
Replied 14 June 2025

@ Ankur

I checked further.

The Capital loss on the property sale can be set off ONLY AGAINST CAPITAL GAIN FROM A PROPERTY SALE. Set off not allowed against any other Capital Gain, eg stocks, mutual funds, bonds etc

The set off can be carried forward for 8 years from the date of Capital Loss. Which should be useful info for you.