Ananthapadmanabhan, who works for an MNC, owns a house from which he earns a rental income apart from receiving salary. Ananth had sold some shares in FY 21-22, which resulted in a net short term capital loss. For filing his ITR for FY 2021-22, he is of the view that since he had only a capital loss, there would be no tax impact and hence he need not declare the capital loss in his return of income. Ananth is planning to book some capital gains in FY 2022-23. Is Ananth correct in assuming so?
A capital loss can be set off only against a capital gain.
A short term capital loss can be set off against both short term and long term capital gains.
A loss from one period can be carried forward and set of in a subsequent period. Income Tax Act allows a carry forward of loss up to 8 years.
But it is possible to carry forward and set off the loss against future gains only if:
a. The loss is declared in the return of income in the year in which it was incurred/booked, and
b. The income tax return is filed within the due date.
Hence Ananth can take the benefit of carry forward and set off of capital loss against his capital gains in the subsequent year only if he declares this loss in his ITR filed for FY 2021-22 and also files his return of income on or before Dec 31, 2022.
How can we help you?
Various clauses from the Income Tax Act may be simplified in online contents. But most of the time, it requires professional help in identifying suitable route for specific instances. Similar to nurturing and taking care of personal health, it is important to also keep a tab on one’s financial health. We at Chockalingam Unnamalai & Associates, can help you understand the pros and cons of various choices you make in the context of personal taxation. You can bank on us for a stress free tax filing and related compliances.
Call us at +91 73050 56628 or drop a mail to frontoffice@onesourcevault.com
ITR Filing – Why choose us?
Effective compliance is a key pillar for growing your finances and career/business. Tax compliance in particular could be cumbersome and at times very stressful. We help you to navigate through the maze of changes to tax laws with ease.
We understand and operate on the principle – “Time is money”. We have a reasonable turnaround time (TAT) which ensures timely tax compliance.
We understand the importance of data security and hence operate in a data-secure environment. Onboard us and experience certainty and value for money!
With a 15 year experience in the Industry, Chocksi decided to commence his practice after the “Entrepreneurial Bug” bit him ! He is the Founder Partner of Chockalingam Unnamalai & Associates, Chartered Accountants.
- Not disclosed foreign assets in ITR? Can you take corrective action? - December 22, 2025
- Taxation of NRI’s MF investments in India – Are you puzzled? - June 22, 2025
- Foreign gains gifted to NRI kids restricted by RBI regulations - May 2, 2025
