I had STCL of Rs 5000 and LTCG of Rs 45000 in FY 2019-20. When filing ITR, the STCL got automatically adjusted against LTCG. Is it possible to adjust STCL of FY 19-20 against STCL of FY 2020-21?
The Income Tax rules for set-off and carry forward of loss are auto-calculated when you file your Income Tax Return. So, the taxpayer does not have an option to adjust a specific loss against a specific income. Instead, as per the set-off rules, a loss is set-off in the following manner: intra-head i.e. same income head for current year, inter-head i.e. different income head for current year and remaining loss is carried forward to be set-off against future incomes. You can read more about Set Off and Carry Forward Losses under Income Tax Act here.