How to adjust capital gains against capital losses in ITR

How to adjust capital gains against capital losses in ITR

If a loss occurs on one investment, it can be adjusted by gains on other investments. You should keep the following in mind.

• No other type of income, such as salary, rent or interest, can be used to compensate capital losses (short-term or long-term).
• Long-term capital losses can only be balanced by long-term capital gains.
• However, Short-term capital losses can be adjusted against short-term or long-term capital gains.Losses from stocks that occur in the short term capital losses can be offset by profits that occur in the short or long term.
• Due to the fact that these gains were tax-free, long-term losses from stocks or equity funds could not be compensated by other gains. However long-term profits frrom Stocks and equity funds'  can be set against other long-term gains now that they are taxed.
• Both short-term and long-term capital losses can be carried forward for up to eight assessment years if you are unable to balance them all in the same year.
• It is not possible to carry forward capital losses from one year to the next if the tax return for that year has not been filed by the due date. To carry the loss forward, you'll need to file returns for later years. Make sure you file your return before the due date, even if you don't have any income that year.