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Capital gain is taxed, what to do with capital loss, know how it helps in saving tax?

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Capital gain is taxed, what to do with capital loss, know how it helps in saving tax?

As per income tax rules, long term capital loss can be set-off with long term capital gain. Short term capital loss can be set-off with long term capital gain in addition to short term capital gain.

Publish Date – 7:19 am, Wed, 30 March 22

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This season is of taxpayers. The current financial year ends on 31 March. In such a situation, the taxpayers are taking care of the loss along with the income. As we know capital gain is taxed. Similarly, there is also relief in case of capital loss. If any investment in your portfolio is giving you capital loss, then definitely take advantage of it. This will give you tax relief.

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When you buy an asset or equity for more and sell it for less, it is called capital loss. Under the Income Tax Act, capital gains are taxed and capital losses are exempt. Talking about capital loss, it can be availed only with capital gain. Meaning, capital loss can be set-off with capital gain.

When you buy an asset or equity for more and sell it for less, it is called capital loss. Under the Income Tax Act, capital gains are taxed and capital losses are exempt. Talking about capital loss, it can be availed only with capital gain. Meaning, capital loss can be set-off with capital gain.

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As per income tax rules, long term capital loss can be set-off with long term capital gain. Short term capital loss can be set-off with long term capital gain in addition to short term capital gain. If the entire capital loss, along with the capital gain, is not set-off in a financial year, then this loss can be covered for the next eight years.

As per income tax rules, long term capital loss can be set-off with long term capital gain. Short term capital loss can be set-off with long term capital gain in addition to short term capital gain. If the entire capital loss, along with the capital gain, is not set-off in a financial year, then this loss can be covered for the next eight years.

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There are two types of capital gain and capital loss. If you invest directly in the stock market or equity related instrument, then it comes under short term capital gain or capital loss if redeemed before 12 months. When redeemed after 12 months, it comes under long term capital gain or capital loss.

There are two types of capital gain and capital loss. If you invest directly in the stock market or equity related instrument, then it comes under short term capital gain or capital loss if redeemed before 12 months. When redeemed after 12 months, it comes under long term capital gain or capital loss.

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As per the Income Tax Act, short term capital gains are taxed at 15 per cent. Long term capital gains are taxed at 10%. Long term capital gains up to 1 lakh are completely tax free. In such a situation, if the capital gain in your portfolio is more than 1 lakh, then it can be set-off from short term capital loss.

As per the Income Tax Act, short term capital gains are taxed at 15 per cent. Long term capital gains are taxed at 10%. Long term capital gains up to 1 lakh are completely tax free. In such a situation, if the capital gain in your portfolio is more than 1 lakh, then it can be set-off from short term capital loss.


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