VR Logo

Setting-off LTC Gains

The process is intricate, but does offer a solution

Can I set-off long-term capital gains (LTCG) from investments in an FMP (375 days maturity) against short-term capital loss (STCL) and long-term capital loss (LTCL) from selling equities in the current year?
-    Anand Kumar V

Where the capital gains are tax-free, capital loss will also be treated as nil for taxation. Hence, LTCG from FMP cannot be set-off against LTCL from selling of equities. But it can be set-off against STCL from selling of equities. Further, it is possible to carry forward the capital losses for eight assessment years immediately succeeding the assessment year in which the loss was first computed.

Post Your Query