About the SET-OFF Losses Calculator
What is the SET-OFF Losses Calculator?
Capital losses reduce your tax, but only in specific ways. A short-term capital loss can be set off against both short- and long-term gains; a long-term capital loss only against long-term gains. Unused losses can be carried forward for eight assessment years.
Enter this year's gains and your total losses (this year's plus brought forward). This capital loss set off calculator applies the rules — long-term losses against long-term gains, short-term losses first against short-term gains and then against long-term gains — and shows what remains taxable and what carries forward.
How to use the SET-OFF Losses Calculator
- Short-Term Capital Gains This Year (₹) (sample: 1,50,000)
- Long-Term Capital Gains This Year (₹) (sample: 3,00,000)
- Short-Term Capital Losses – this year + brought forward (₹) (sample: 2,00,000)
- Long-Term Capital Losses – this year + brought forward (₹) (sample: 50,000)
- Press Set Off Capital Losses (results also refresh as you type). The result card shows the Taxable Capital Gains After Set-Off, along with Short-term gains left, Long-term gains left, Short-term loss to carry forward and Long-term loss to carry forward.
Formula used
Taxable gains = Gains − Eligible losses set off
- STCL = against STCG, then LTCG
- LTCL = against LTCG only
Setting short-term losses against short-term gains first is usually best, since STCG on equity is taxed at 20% versus 12.5% for LTCG.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Short-Term Capital Gains This Year (₹) | 1,50,000 |
| Long-Term Capital Gains This Year (₹) | 3,00,000 |
| Short-Term Capital Losses – this year + brought forward (₹) | 2,00,000 |
| Long-Term Capital Losses – this year + brought forward (₹) | 50,000 |
| Result | Value |
|---|---|
| Taxable Capital Gains After Set-Off | ₹2,00,000 |
| Short-term gains left | ₹0 |
| Long-term gains left | ₹2,00,000 |
| Short-term loss to carry forward | ₹0 |
| Long-term loss to carry forward | ₹0 |
| Carry-forward period | 8 assessment years (file your return on time) |
Tips for using the SET-OFF Losses Calculator
- You must file your return by the due date to carry forward capital losses.
- Capital losses cannot be set off against salary or other income.
- Book losses before 31 March to offset gains made in the same year (tax-loss harvesting).