While going through income tax on capital loss,I came across that Long term capital loss can be carry forwarded for next 8 years.But the question I got in my mind is
“What is the use of carry forwarding longterm capital loss??”
Irrespective of whether loss or gain LTCG tax is zero.So what is the use of LTCL carry forwading
Yep, you are right, there is no point carrying forward long term capital losses and setoff against long term capital gains as anyways LTCG is exempt from taxes.
Don’t know if you have seen this: http://zerodha.com/varsity/module/markets-and-taxation/
Long term capital gains in equity is exempted only upto 1 lakh per Financial year. So , I am assuming if I have Long term capital losses in previous year and my LTCG in this year is above 1 lakh, I can set off to avoid paying extra 10% tax which is currently applicable.