💰 Tax Savings · Income-head reliefs
Set-off and carry-forward of losses — the rules
✍️ EaseValue Advisors · Updated 18 Jul 2026 · FY 2025-26
In short
Losses can be set off against income and the unused portion carried forward — but only if you file on time. The rules differ by head.
Key rules
- Short-term capital loss → against any capital gain; long-term loss → only against long-term gains. Carry forward 8 years.
- Business loss → against any head except salary; carry forward 8 years (business income only).
- House-property loss → set off up to ₹2 lakh/year against other income; carry forward 8 years.
- Speculation/intraday loss → only against speculative income; carry forward 4 years.
The golden rule
To carry forward any loss (except house-property and unabsorbed depreciation), you must file the return by the due date.
Who it helps
Investors, traders and businesses — report losses properly to save tax in future years.
The law behind it
Set-off & carry-forward (Chapter VI)
General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions
change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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