n NISM Certifications
V-A NISM Series V-A
Medium

Long term capital loss from an investment can be set off against _____.

Practice question from Nism VA Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    short term capital gains only

  2. B

    short term capital gain or long term capital gain

  3. long term capital gains only

    Correct answer

  4. D

    long term capital loss cannot be set off

Why this is the answer

According to the Income Tax Act, long-term capital loss can only be set off against long-term capital gains. It cannot be used to offset short-term gains or other sources of income.

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