InvestorQ : How exactly does the set off of capital losses (both ST and LT) actually work while filing my returns?
Dilmini Mercia made post

How exactly does the set off of capital losses (both ST and LT) actually work while filing my returns?

Answer
user profile image
Dhwani Mehta answered.
1 year ago


Is it possible to set-off capital losses against other heads income like salary, rental income, other income etc? Alternatively, is it possible to set off my loss on self owned house property against my capital gains? The answer is an emphatic “NO”. We cannot set-off capital losses against the below heads of income…

· Income from Salary

· Income from Business or Profession.

· Income from house property (rental income and not capital gains on sale of property)

· Other sources of income.

Similarly losses on heads like house property also cannot be set off against capital gains. In short capital losses can only be set off against capital gains and no other head of income. The capital losses can be set-off against capital gains only.