Tax Implication of selling property in loss

Quick Summary
This discussion addresses the tax implications of selling a property at a loss, specifically for an individual who purchased a property for ₹26 lakh and sold it for ₹18 lakh. Guidance is sought on reporting this loss in ITR-2 and potential exemptions. The conversation also delves into the tax treatment of RSUs, including when they become taxable and how to report vested RSUs and associated dividend income. It clarifies that capital losses on property can only be set off against capital gains from property sales and can be carried forward for up to 8 years.

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?

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.

@ 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.

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