InvestorQ : If I sell the shares in loss then its adjusted my LTCG for mutual funds profits?
Gayatri Surendran made post

If I sell the shares in loss then its adjusted my LTCG for mutual funds profits?

Answer
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Neelam Naik answered.
9 months ago


Yes your loss on equities will only give you 10% tax shield since equities are taxed at 10% only. However, capital gains on any asset can be written off against capital losses of any other asset. The only condition is that capital gains or capital losses can be used to adjust against the income or loss from salary or house property. Capital losses can only be written off against capital gains.

Secondly, you need to remember that short term capital losses be written off against short term capital gains and also against long term capital gains. However, long term capital losses can only be written off against long term capital losses. This is a condition you need to keep in mind. Otherwise, capital gains and losses can be set off against one another.