Set-off means adjusting your capital losses against your capital gains in the same year to reduce tax. Anything you cannot use this year can be carried forward to future years and set off against eligible gains then.

Yes. A short-term capital loss is flexible — it can be set off against both short-term and long-term capital gains. This is why short-term losses are the more valuable of the two for tax planning.

No. A long-term capital loss can only be set off against long-term capital gains, never against short-term gains. This asymmetry is the single most misunderstood rule in capital gains tax.

No. Capital losses can only be adjusted within the capital gains head. They cannot reduce salary, business income, rental income or interest income.

Both short-term and long-term capital losses can be carried forward for 8 assessment years following the year of loss. After that, any unused loss lapses permanently.

You lose the right to carry forward the loss entirely. Carry-forward is only allowed if you file your return by the due date under Section 139(1). This is the most expensive filing mistake investors make.

Yes. Zero income is not a disqualifier. As long as you file your return by the due date, the loss is preserved and can be used in future years.

Yes, subject to the usual rule. A short-term loss on mutual funds can offset both short-term and long-term property gains. A long-term loss on mutual funds can offset only long-term property gains.

No — and this calculator avoids it automatically. Equity long-term gains up to ₹1.25 lakh are already exempt under Section 112A, so applying a loss there wastes it. Losses should only absorb gains above the exemption.

No. Under Section 115BBH, losses on virtual digital assets cannot be set off against any income — not even against other crypto gains — and cannot be carried forward. It is the most restrictive loss treatment in Indian tax law.

Differently. Intraday equity trading is speculative business income, so its losses offset only speculative profits and carry forward for 4 years, not 8. F&O is generally non-speculative business income. Neither is a capital loss, so they fall outside this calculator.

The Act does not prescribe a strict order, so you can apply losses in the way that minimises your tax. This calculator applies them against your highest-taxed gains first, which is generally the optimal approach.

Deliberately booking a loss before the financial year ends so it can offset gains you have already realised. India has no wash-sale rule, so you may repurchase the asset — though transactions lacking commercial substance can be challenged. It works for equity, funds, property and gold, but never for crypto.

No. Capital gains rates and the set-off and carry-forward rules are identical under the old and new regimes. Your regime choice affects your regular income, not these rules.

Capital gains and losses are reported in Schedule CG, with carried-forward losses shown in the relevant loss schedule. Reporting them correctly is essential — errors here are a common reason set-off gets denied on assessment.

No. It is an educational estimate applying the standard Section 70 and 74 rules. It excludes surcharge, crypto, F&O and speculative losses, and does not replace your capital gains statement. Please confirm with a qualified tax advisor before filing.