Fact-check notes
Last fact-checked: 2026-05-30
Tax caution: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. New Act, new section and new form references should be verified against official utilities before filing.
Use this page as preparation guidance. A professional should verify the active law year, notification, portal utility and source records before filing or taking a tax position.
What this covers
Capital losses can reduce future capital gains only when classified, set off and carried forward correctly under ITR rules.
- Short-term capital loss and long-term capital loss have different set-off rules.
- Capital losses generally cannot be set off against salary or business income.
- Timely return filing is important for carry-forward.
- Prior-year loss schedules must be continued accurately.
Who this is for
- Investor with share market loss.
- Property seller with capital loss.
- Mutual fund investor with mixed gains and losses.
- Taxpayer correcting loss schedule.
Documents and data to verify
- Capital gains/loss statement.
- Prior-year ITR loss schedule.
- Trade and sale documents.
- AIS/Form 26AS capital gains entries.
Common mistakes to avoid
- Setting off LTCL against STCG incorrectly.
- Missing carry-forward due to late filing.
- Not reporting small losses.
- Forgetting prior-year loss expiry.
How to proceed
- Confirm the applicable financial year, assessment year, taxpayer type, state and portal status before acting.
- Reconcile portal data with books, AIS/Form 26AS, GST returns, contracts, invoices, bank statements and source documents.
- Prepare a written computation, checklist, filing note or response with assumptions clearly stated.
- Download acknowledgements, challans, workings and evidence after filing or submission.
FAQs
Can WorkIndex help with this?
Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.
Is this page final legal advice?
No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.
What should I mention while posting?
Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.