What is Carry Forward Of Losses?

If you suffer a loss under the head “Income from House Property”, that loss can be adjusted against income from any other source, in the current year.

The unadjusted house property losses can be carried forward for a period of up to 8 years.

In the coming financial years, such brought forward losses can be adjusted only against “income from house property”.

To claim such losses the return need not be filed on time.

However, long term capital losses, excluding those from shares, can be set off against long-term capital gains made on the sale of other assets only.

While short term capital losses can be adjusted against both short term and long term capital gains.

Both these losses can also be carried forward for a period of up to 8 years. To claim such losses the return of income has to be filed on time.

But, long-term losses on sale of shares, sold in a recognized stock exchange cannot be adjusted against any income and neither can they be carried forward.

Also Read:-Everything You Need to Know about Capital Gains Tax in India

Also Read:-Capital Gains – when and to what extent are they exempt from tax