How to set off Capital Loss against capital gains

General
1

I know that Long Term Capital Loss can be set off against only Long Term Capital Gains, while Short Term Capital Loss can be set off against both Long and Short Term Capital Gains.

My question is whether I can set off losses in one type of asset against gains in other type of asset?
For example, can I set off Short Term Capital Loss in Equity Shares/Funds against Long/Short Term Capital Gains in Debt/Gold Funds/Real Estate?

If yes, does this type of cross asset capital loss set off can also be done using carried forward losses from the past Assessment Years?

2

@Quicko Can you,please.

3

Yes. You can set off capital loss from one type of asset with the gain from another type of asset. This set off can also be done using brought forward losses from previous years. Capital Loss remaining after set off can be carried forward for 8 years and be set off against future Capital Gains from same or different type of Asset.

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4

@Quicko Can I also set off loss on F&O trades against gain from real estate?

Lets say, I sold a real estate last year and had 10 lakh capital gain on that. Can I set it off against F&O losses I had during the same year?

5

F&O losses are business losses, not capital losses, hence cannot be done.

6

F&O Loss is a Non-Speculative Business Loss. It can be set off against any income except Salary Income. Thus, the F&O Loss can be set off against Capital Gain from sale of real estate.

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7

@Quicko can I set off stcl with FNO profit ?

8

Hi @gpgane, no you can not set off your short term capital losses against your FNO profit.

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9

As far as I know, you can offset capital losses against capital gains of the same year but cannot use them against the gains of earlier years. But if you haven’t used your capital loss in a year, you can carry it forward against gains of future years. But I am not sure if it’s 8 years or 10 years. Talk to your bookkeeper.

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