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Setting Off Short-term Losses

Short-term capital loss you incurred on equity trading can be set off against the realized short-term capital gains from an equity fund

I have invested in Axis Treasury Advantage Fund - Growth plan in November 2013. Since then it has given annualised return of 9.13%. If I sell the units now can the short term capital gains arising out of this sale be adjusted against short term capital loss made in equity trading?
- Revathy Sridhar

Yes, the short term capital loss you incurred on equity trading can be set off against the realized short term capital gains from Axis Treasury Advantage as per Sec 74, Income Tax Act, 1961. Short term capital losses can be adjusted against both long term and short term capital gains. They can also be carried forward to the next year if not adjusted in the same financial year. But if the loss is incurred on intra day trading, that is considered a speculative loss and cannot be set off against capital gains. It can be set off only against speculative gains.



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