Short-term capital loss from an investment can be set off against what?
A
Short-term capital gains only
B
Short-term capital gains or long-term capital gains
C
Long-term capital gains only
D
Short-term capital loss cannot be set off
Correct Option:
B
Explanation
Under the Income-tax Act, a short-term capital loss can be set off against both short-term capital gains and long-term capital gains. In contrast, a long-term capital loss can be set off only against long-term capital gains.
