Hi,

My mother has made investments in 2 mutual funds in lump sum made a couple of years ago.

- SBI Magnum dividend - an initial investment of 1,00,000 INR and the current value is around 65,000 INR
- Tata large& mid growth - an initial investment of 1,00,000 INR and current value is around 1,30,000 INR

I am contemplating the tax implications on the redemption of these mutual funds.

I understand that 10% LTCG is applicable only in capital gains above 1 lacs for a year

**Case 1**- If she redeems both of these mutual funds in the current financial year(FY 2018-19), then Long term capital loss will be 5,000 INR

**This amount can be carried forward for the next 8 assessment years.**

**Case 2**- If she redeems only the Tata mutual fund in the current financial year(FY 2018-19), then long term capital gain will be 30,000

**LTCG will be 30,000 INR but there will no tax as it is below 1 lac limit for the financial year.**

(**She has not sold any equity in the current financial year**)

Then she can redeem the SBI Mutual fund in the next financial year(say in April 2019). **If the redeemed value in April 2019 is 65,000 INR, then 35,000 INR will be long term capital loss for her and it can be carried forward for the next 8 assessment years.**

**Question 1**-So for her, case 2 will be a better as she can offset the long term capital loss incurred in April 2019 in future(If LTCG is more than 1 lacs INR)

**Question 2**- Can long term capital loss/gains from different categories such as equity be used to offset long term capital loss/gain in another category such as real estate?