Set Off & Carry Forward of Capital Losses – Sec 74

SEC – 74: LOSS UNDER THE HEAD CAPITAL GAINS

Brought forward Long term capital lossCan be set off against current year Long term Capital Gain
Brought forward Long term capital lossCannot be set off against current year Short term Capital Gains
Brought forward Short term capital lossCan be set off against current year Short term Capital Gains
Brought forward Short term capital lossCan be set off against current year Long term Capital Gain

NOTES:-

  • Such capital losses can be carried forward to a maximum of 8 AYs, immediately succeeding the AY for which the loss was first computed.
  • It is necessary that a return of loss is furnished before the due date prescribed u/s 139(1).

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