Capital Loss can be carried forward for 8 assessment years immediately succeeding the assessment year in which the loss was first computed (Section 74)

If the net result of the computation under the head “Capital gains” is a loss, the whole of the loss shall be carried forward to the following assessment year as follows—

    Long-term capital loss can be set off only against long-term capital gains.

    Short-term capital loss can be set off against short-term or long-term capital gains.

Such loss can be carried forward for 8 (eight) assessment years immediately succeeding the assessment year in which the loss was first computed.

Such loss cannot be carried forward unless return is filed within the time limit of section 139(1)

Section 139 (1) of Income Tax Act Due Dates and Other Conditions 

Those who do not require auditing or assessing of their books of accounts should file ITRs by the 31st of July for each assessment year. This category includes the following types of filers:

        Consultants.

        Salaried professionals or employees.

        Freelancers.

        Self-employed or professional individuals.

Those having their books of accounts audited should file by 30th September each year. This category includes companies, self-employed individuals or professionals, working partners at firms/companies, and consultants. If you fall in this category, make sure that you keep the last date in mind and abide by all the provisions of the same.