Ask Value Research

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.

This article was originally published on June 02, 2015.

Ask Value Research aks value research information

No question is too small. Share your queries on personal finance, mutual funds, or stocks and let us simplify things for you.


Other Categories

Informed fund ideas, better judgment. Every month. Mutual Fund Insight, every month since October 2002.

Take charge. Know more. Keep more. Mutual Fund Insight helps you do all three — every month