The Finance Act, 2002 had, with effect from the A.Y. 2003-2004, amended Section 70 of the I.T. Act, 1961, to provide that while losses from transfer of short-term capital assets can be set off against any capital gains, whether short-term or long-term, losses arising from transfer of long-term capital assets would be allowed to be set off only against long-term capital gains. Through an amendment of Section 74 of the I.T. Act, 1961, it is further provided that a long-term capital loss would be carried forward separately for eight assessment years to be set off only against long-term capital gains. However, a short-term capital loss may be carried forward and set off against any income under the head “Capital gains”. |
