Setting off long term capital loss from property

Taxation
1

I have Long term capital loss of 3,50,000 from sale of property in FY 2023-24. Can I set it off against my Realized Long term capital gain from Shares/Mutual funds.

I have booked Long Term Capital Gain of 2 Lakh till now this year and want to set it off against my Long term capital loss from Sell of property. Please advise

2

@Quicko

3

Hi @deepkalra

Loss from house property can be set off against any income including salary.

So, if you have any income from other heads where the tax rate is higher, it’s better to set off against that instead of LTCG from shares and MFs as tax rate is lower here.

Do consult your CA before finalizing things :slight_smile:

4

SIr, it is not house property but commercial one. So Is the rule same even for commercial property

5

Hey @deepkalra @meher,

Capital gains/losses arise in case of sale of house property. This income is treated as ‘income from capital gains’, whereas, any rent received is treated as ‘income from house property’.

Hence, in this case, the LTCL from sale of house property can be set-off against only LTCG. These LTCG can arise from sale of stocks/mutual funds.

Here’s a detailed read on set-off and carry forward of losses.

Hope this clarifies.

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