Tax planning
Capital loss set-off and carry forward with a timely return, Sec 108, 109, 111, 121 (old 70, 71, 74 and 80)
What this means, checked by a CA
A capital loss can cut your capital gains tax this year and for up to 8 more years, but only if you file your return on time and show it. Short-term losses can be used against any gain; long-term losses only against long-term gains. We map every loss, apply it in the best order and make sure it is carried forward in your return.
₹999
a year, + 18% GST
- Delivered in 1 working day after statements
- Due: Return must be filed by the Sec 139(1) (now 263(1)) due date to carry forward a loss (AY 2026-27: 31 July 2026 for ITR-2). Losses carry forward for 8 assessment years.
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 5 items
Broker tax P&L and MF statement
Current year gains and losses
Last 8 years' ITR acknowledgements
Prove loss years were filed on time
Previous year's Schedule CFL
Opening loss balances by year and type
Sec 270(1) (old 143(1)) intimations for loss yearsOptional
Loss as accepted by CPC
Property or other asset sale workingOptional
Non-equity losses
DiscussionWhat we discuss · 5 items
Were the earlier loss years' returns filed by the due date?
Late loss returns cannot carry forward
Are the losses short term or long term, and on which assets?
Long-term loss only against long-term gain
Do you have F&O, intraday or crypto losses as well?
These are not capital losses; different rules
Did you revise a return after the due date for a loss year?
Timely original return keeps the right
Do you expect large gains in coming years (property, ESOP exit)?
Plan use before the 8-year expiry
FormsForms we file · 5 items
Build a loss register: year, type (short or long), amount, expiry year
Where: Internal working from past Schedule CFL. Due: Before filing
Set off current-year losses
Short-term loss first against short-term gains taxed at higher rates, then against long-term gains; long-term loss only against long-term gains; Sec 198 (old Sec 112A) gains after set-off, then the ₹1,25,000 exemption
Where: Internal working. Due: Before filing
Set off brought-forward losses, oldest first
Brought-forward short-term loss against any capital gain; long-term loss only against long-term gain; drop any loss older than 8 assessment years
Where: Internal working. Due: Before filing
Fill Schedule CG, CYLA, BFLA and CFL
Where: https://www.incometax.gov.in > e-File > ITR-2 or ITR-3. Due: AY 2026-27: 31 July 2026 (ITR-2)
File and e-verify before the due date even if there is no tax
Where: https://www.incometax.gov.in. Due: By the Sec 263(1) (old 139(1)) due date
DeliverablesWhat you get · 2 items
Loss register with expiry years
When: With the return
Filed ITR showing losses carried forward
When: Same day
Questions people ask
Can I set off a share loss against my salary?
No. Capital losses can only be set off against capital gains.
How long can I carry a capital loss forward?
8 assessment years after the year the loss was first computed.
I filed late. Can I still carry the loss forward?
No. The loss must be determined in a return filed within the Sec 139(1) due date.
Will my old losses survive the new Income-tax Act 2025?
Yes. They continue and are set off under the 2025 Act in the same way the 1961 Act allowed.
Can I file ITR-1 if I have a loss to carry forward?
No. ITR-1 and ITR-4 cannot be used with brought forward or carried forward losses.
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