InvestorQ : What are some of the key golden rules that I need to remember about setting off the losses against capital gains?
Anjana Aiyar made post

What are some of the key golden rules that I need to remember about setting off the losses against capital gains?

Answer
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Arya Nanda answered.
1 year ago


Here are some basic rules that you need to keep in mind…

Capital losses can be set off against capital gains on the same head during the same financial year based on certain pre-described conditions.

If you cannot set-off a capital loss under the same head during the same financial year, you can carry forward such losses to the next financial year and can be set-off against Capital Gains (if any) arising in the next year. A capital loss can be carried forward for 8 years from the end of the financial year in which the loss has been incurred.

Don’t ever miss this important. This is one of the most important points to note. Any capital loss can be carried forward to the next year only if you had declared such losses in your Income Tax Returns and the tax return is filed before the due date. Remember, late filing of returns actually disqualifies you from getting the loss carry forward benefit. So if you have losses, don’t ever forget to show it in your returns or else you will not be eligible to claim the same.