I have LTCG from selling my property. I have loss in long term equity investment. Is it possible to adjust the loss from equity long term investment against LTCG of property sale. If yes, against which section of I should show the adjustment.
Yes, you can adjust long-term capital loss from equity investments against long-term capital gains from the sale of property. While filing the ITR it will get adjusted in Schedule CG (Capital Gains).
Hope this helps!
Yes,
Long-Term Capital Loss can be set off only against Long-Term Capital Gains (not short-term gains).
in your case:
-Report both LTCG from property and LTCL from equity under the ‘Capital Gains’ head.
-The adjustment will happen automatically** when you fill Schedule CG in ITR-2 or ITR-3.
Yes, you can adjust long-term capital loss (LTCL) from equity investments against long-term capital gains (LTCG) from the sale of property.
Long-Term Capital Loss can be set off only against Long-Term Capital Gains (not short-term gains).
Since your property sale results in LTCG and your equity investment resulted in LTCL, this set-off is allowed under the Income Tax Act.
Section 70: Intra-head adjustment (if both gains/losses are under ‘Capital Gains’)
Section 74: Carry forward and set-off of capital losses (if you want to carry forward)
So in your case:
Report both LTCG from property and LTCL from equity under the ‘Capital Gains’ head.
The adjustment will happen automatically when you fill Schedule CG in ITR-2 or ITR-3.
Most Important :
Ensure that both transactions are reported properly in Schedule CG.
If any LTCL remains unadjusted, you can “carry it forward for 8 assessment years”.
You must file your return before the due date to claim this set-off and carry-forward benefit.
Would you like help with the format or ITR schedule filling please drop a WhatsApp message on 98640 09090 our tax expert can file your return without any issue.
Thank you for your clarification.
Is it possible to adjust the loss from equity short term trading (<1 year) against LTCG of property sale.
Yes, you can set off your loss from equity short term trading against LTCG of property sale.
Hope this helps!
Thank you for your clarification.
Question 1:
I have LTCG and STCG from Sale of securities and Mutual Fund.
Also I have loss in FNO trading.
Is it possible to adjust the loss in FNO trading against STCG and LTCG while computing income tax?
Question 2:
I have income only from
1. LTCG and STCG from Security transaction and Mutual Fund
2. Dividend from Equities
3. Interest from S.B Account
4. Interest from bank FD
I have the following expenses
1. Tution fees for my child
2. NPS investment
3. ELSS Mutual Fund investment
Is it possible to deduct the above expenses from my earnings?
Please clarify.
Thank you.
Hello @Sumathi_Thiruppathi
Answering to the above queries:
-
If you have any F&O losses in the current year, they can be set off against the current year’s STCG and LTCG. Accordingly, the tax will be calculated based on the adjusted profit.
-
Tuition fees and ELSS fund investments can be claimed as deductions under Section 80C, while NPS investments can be claimed under Section 80CCD(1B) under the old tax regime when filing the income tax return. However, these deductions cannot be claimed directly against capital gains (LTCG/STCG). These deductions can only be used to reduce tax on income from dividends and interest. Capital gains (LTCG/STCG) are taxed separately and cannot be offset by these Chapter VI-A deductions.
Hope this helps!
Thank you for your valuable time to respond my query.
I want to file my income tax on my own.
Which ITR form should I use?
Is they any document to help for this?
Thank you.
Since you have a loss from F&O trading, you are required to file ITR-3.
You can also refer this thread : Which ITR form should I file for AY 2025-26?
Hope this helps!
File ITR 3 , as you are in F&O trading . F&O is considered as business income from tax point of view.
You can refer the articles