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Setting Off Short-term Capital Losses

Short-term capital losses on equity funds can be set-off against capital gains on liquid funds

I am a salaried individual. I wish to know,

  1. if an individual can set-off carried forward short term capital losses of equities from previous years with short term capital gains arising out of Liquid Funds in current year.
  2. which other asset classes can be used to set off previous years' brought forward short term capital loss.

- Kapil Punjabi

Yes, short-term capital losses on equity funds can be set-off against capital gains on liquid funds. The law allows short term capital losses to be carried forward and set off against short-term or long-term gains from any capital asset in future years. Such losses can be carried forward for the next eight years too.

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