I am a salaried individual. I wish to know,
- 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.
- 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.