InvestorQ : Can LTCG and STCG be set off against other heads of income?
indhumathi Sayani made post

Can LTCG and STCG be set off against other heads of income?

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shrinidhi Rajan answered.
2 years ago
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STCG and LTCG being capital gains cannot be set off against other sources of income like salary, rent, interest etc. One important aspect of capital gains is that the capital gains and losses on shares can only be set off against capital gains but not against other income. For example, any short term loss can be written off against long term gains and short term capital gains. However, long term losses can only be written off against long term gains and not against short term gains. Such losses can also be carried forward for a period of 8 assessment years and set off accordingly. These are the basic rules of setting off and for carry forward. Speculative profits arising from intraday trading can only be set off against speculative gains and not against capital gains. Also such profits can only be carried forward for a period of 4 years as against 8 years for capital gains.

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