All you need to know about long-term capital gains on equity investments
Short-term losses can be set-off against long-term gains as well as short-term gains from any capital asset.
Long-term gains below Rs 1 lakh threshold have to be reported. “It is only when the taxpayer reports such income that the department will know that Rs 1 lakh exemption has been claimed on LTCG from equity investments,” says Karan Batra, a Delhi-based chartered accountant.
If long-term or short-term losses bring down the net LTCG to below Rs 1 lakh, do I have to report the gains and losses in my return?
Gains have to be reported irrespective of the amount of gains. After you fill the cost of acquisition, FMV and sale value of each stock sold, the form will auto calculate the net gains and set off the losses against capital gains. Unadjusted losses can be carried forward to the next year.
Also read: ITR filing: How to report income from investments
Can short-term losses from stocks be adjusted against long term gains?
Short-term losses can be set-off against long-term gains as well as short-term gains from any capital asset. However, long-term losses can only be adjusted against long-term gains from any asset.
If I made long-term losses from stocks, can these be carried forward to adjust against other gains in future years?
Yes, long-term losses can be carried forward up to eight years to be set-off against long-term gains from stocks and other assets.