Can i offset share losses against tax

Fortunately, if you are not able to set off your entire capital loss in the same year, both short term and long term loss can be carried forward for 8 assessment years immediately following the assessment year in which the loss was first computed. If capital losses have arisen from a business, such losses are allowed to be carried forward and carrying on of this business is not compulsory. If you have incurred a long term capital loss on selling shares or equity mutual fund units after Also, you can carry forward these losses for setting off in later years up to 8 assessment years.

Prior to Therefore, the same was not allowed to set off or carried forward. Set-off and Carry Forward of Losses. Thank you for your response. Other Risk Covers. Personal Finance News.

Mutual Funds. Rate Story. Font Size Abc Small. Abc Medium. Abc Large. Getty Images If you are not able to set off your entire capital loss in the same year, both short-term and long-term loss can be carried forward for up to eight assessment years. Losses made on one investment can be set off against gains from other assets.

Here are some points to keep in mind when you do so. Capital losses short-term or long-term cannot be set off against any other head of income such as salary, rent or interest. Long-term capital losses can be set off only against long-term capital gains. But short-term capital losses can be set off against short-term or long-term capital gains. Even short-term capital losses from stocks can be set off against other short- or long-term capital gains.

Till recently, long-term losses from stocks or equity funds could not be adjusted against other gains because these were tax-free.

But now that long-term gains from stocks and equity funds are taxable, they can be set off against other long-term gains. If you are not able to set off your entire capital loss in the same year, both short-term and long-term loss can be carried forward for up to eight assessment years. Also, returns of subsequent years will have to be filed to carry forward the loss. Even if you do not have any income that year, file your return before the due date to carry forward the loss. Source: Cleartax.

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Mutual Funds. How can I set off losses from share trading against income tax liability in current FY? Rate Story. Font Size Abc Small. Abc Medium. Abc Large. ThinkStock Photos.