I have capital loss from sale of Equity Mutual Fund both from short term & long term. But there is a long term gain from sale of Debt Mutual Fund. How the income tax will be calculated? Can gain & loss be combined or it will be taxed separately? Shall be thankful to receive your advice.
Ans: As per amendment mentioned in budget 2018, if you have incurred any capital loss on selling Equity funds after 31-03-2018, you can set them off against any LTCG.
Short term Capital losses are allowed to be set off against both long term & short term gains.
If you are unable to set off the entire capital loss in the same year, both short term & long term capital losses can be carried forward for 8 assessment years.