Ch.8 · Capital Gains Tax on Mutual Funds · medium

What is 'carry forward of capital losses' from mutual fund investments?

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EXPLANATION

Capital losses (both STCL and LTCL) can be carried forward for a maximum of 8 assessment years following the year of loss. Carried-forward STCL can be set off against both STCG and LTCG in future years. Carried-forward LTCL can only be set off against LTCG. These losses cannot be set off against salary, business income, or other non-capital income. The ITR must be filed on time to preserve carry-forward rights.

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