Can I set off loss from stocks against my salary income for that financial year?
No, you cannot set off Capital Loss against salary income. Capital losses can only be set off against other capital losses.
- Short Term Capital Loss can be set off against both LTCG and STCG
- Long Term Capital Loss can be set off against only LTCG
You can carry forward the other capital loss up to the next 8 financial years - to set off against future capital gains.
Hope this helps!