If you sold shares, mutual funds, property, or gold in the same year — some at a profit, some at a loss — the tax you owe isn't just "gain minus loss." The Income-tax Act has strict rules on which loss can offset which gain. This multi-asset capital gains netting calculator applies those rules for you, across all your asset types, in one shot.

What Is Multi-Asset Capital Gains Netting Calculator?

It's a free tool that nets your short-term and long-term capital gains and losses across multiple assets — listed equity, equity mutual funds, property, debt funds, gold, and unlisted shares — in one place. Instead of manually checking which loss is allowed against which gain, you enter your numbers and the calculator applies Sections 70, 71, and 74 of the Income-tax Act automatically. It's built for retail investors and traders juggling multiple demat accounts, salaried employees with side investments, NRIs settling Indian capital gains, and CAs preparing client computations who need a quick, defensible netting check before filing.

Multi-Asset Capital Gains Netting Calculator Formula (as per Sections 70, 71 & 74, Income-tax Act, 1961)

Step 1 — Net within each head (Section 70):
  Net STCG = (STCG gains) − (STCG losses), across ALL short-term assets
  Net LTCG = (LTCG gains) − (LTCG losses), across ALL long-term assets

Step 2 — Cross-head set-off (Section 70(2) / Section 74):
  If Net STCG is a loss → it MAY be set off against Net LTCG (if positive)
  If Net LTCG is a loss → it CANNOT be set off against Net STCG
                          (long-term loss offsets only long-term gains)

Step 3 — Carry forward (Section 74):
  Any unabsorbed loss carries forward for 8 assessment years,
  provided the ITR is filed by the due date (Section 80)

This is the core statutory sequence used by the Income Tax Department's own set-off and carry-forward guidance. A short-term capital loss (STCL) can absorb both short-term and long-term gains. A long-term capital loss (LTCL) can only reduce long-term gains — never short-term ones.

How This Calculator Works

1. Enter your gains and losses separately for four buckets: STCG on listed equity/equity MF, LTCG on listed equity/equity MF, STCG on other assets (property, debt funds, unlisted shares, gold), and LTCG on the same "other" category.
2. The calculator nets gains against losses within each bucket first — this mirrors Section 70's intra-head rule.
3. It then combines the two short-term buckets into one Net STCG figure, and the two long-term buckets into one Net LTCG figure.
4. If one of these two figures is negative, the calculator checks whether cross-head set-off is allowed (short-term loss vs. long-term gain — yes; long-term loss vs. short-term gain — no) and applies it correctly.
5. It shows your final taxable STCG, final taxable LTCG, and any loss left over to carry forward — split by type, since STCL and LTCL carry forward differently.

Step-by-Step Example Calculation

Rohan, a salaried investor, sold multiple assets in FY 2025-26:

• Sold equity shares at a profit of ₹1,80,000 (short-term, STT paid)
• Sold an equity mutual fund at a loss of ₹2,50,000 (short-term)
• Sold a plot of land held for 4 years at a profit of ₹4,00,000 (long-term)
• Redeemed a debt fund at a loss of ₹30,000 (long-term, per current classification rules)

Step 1 — Net within each head:

• Net STCG = ₹1,80,000 − ₹2,50,000 = −₹70,000 (a short-term loss)
• Net LTCG = ₹4,00,000 − ₹30,000 = ₹3,70,000 (a long-term gain)

Step 2 — Cross-head set-off: Since Net STCG is a loss and Net LTCG is a gain, the ₹70,000 short-term loss is set off against the long-term gain (Section 70(2)).

Step 3 — Result:

• Final taxable STCG = ₹0
• Final taxable LTCG = ₹3,70,000 − ₹70,000 = ₹3,00,000
• Nothing carries forward

Rohan's ₹3,00,000 taxable LTCG is then taxed under Section 112A (equity) or Section 112 (other assets), after any exemption threshold. Use the LTCG calculator for that final tax figure — this tool stops at netting.

Who Should Use Multi-Asset Capital Gains Netting Calculator

• Retail investors and traders holding equity, mutual funds, and F&O across multiple brokers who booked both gains and losses in the same year
• NRIs settling capital gains on Indian shares, property, or mutual funds who need a clean netting summary before filing
• Salaried and corporate employees with side investments in stocks, property, or gold sold alongside their regular income
• Chartered Accountants and tax practitioners who need a quick sanity check on client set-off computations before populating Schedule CFL and CG in the ITR
• Company secretaries and advocates advising clients on year-end tax planning around booking losses strategically

Latest Rules You Should Know (2026)

• STCG on STT-paid listed equity and equity mutual funds is taxed at a flat 20% under Section 111A — raised from 15% by the Finance (No. 2) Act, 2024, effective 23 July 2024.
• An early draft of the Income Tax Bill, 2025 had proposed a one-time relief letting long-term capital losses up to 31 March 2026 be set off against any capital gain, including STCG, from AY 2027-28. This relief was dropped in the final enacted Act. The Income Tax Department's own set-off and carry-forward guidance confirms brought-forward long-term capital losses are still set off only against long-term capital gains, in the manner prescribed under the old Section 74. Don't rely on the wider relief you may have read about earlier in 2025 — check your CA before assuming it applies. [VERIFY]
• Carry-forward of capital losses still requires the return to be filed by the due date under Section 139(1)/Section 80 — a belated return forfeits the right to carry the loss forward.

Common Mistakes People Make

• Assuming a long-term loss can reduce a short-term gain — it legally cannot, under Section 74.
• Netting gains and losses across financial years instead of within the same assessment year first.
• Forgetting that STCG on equity (111A) and STCG on property or debt funds (slab rate) are taxed differently even though they net together at the STCG stage.
• Missing the ITR due date and losing the right to carry forward an otherwise valid loss.
• Not separating "other assets" LTCG from equity LTCG, which leads to wrong exemption and rate application later.
• Assuming an old-LTCL-vs-STCG relief still applies — it was proposed but dropped from the final Act; long-term loss still offsets only long-term gains.

FAQs

Can a short-term capital loss be set off against a long-term capital gain? 

Yes. Section 70(2) allows a short-term capital loss to be set off against both short-term and long-term capital gains in the same year. This is one of the few losses in the Act with this flexibility.

Can a long-term capital loss be set off against a short-term capital gain?

No. A long-term capital loss can only be adjusted against long-term capital gains, either in the same year or in future years up to 8 assessment years, subject to timely ITR filing.

How many years can I carry forward a capital loss? 

Both short-term and long-term capital losses can be carried forward for 8 assessment years immediately following the year the loss was first computed, under Section 74(2).

Do I lose my carry-forward if I file my ITR late? 

Yes, ordinarily. Section 80 requires the return to be filed by the due date under Section 139(1) to carry forward a capital loss; a belated return under Section 139(4) forfeits this right.

Are equity and non-equity capital gains netted together? 

Yes, at the netting stage. Section 70/71 group all short-term gains together and all long-term gains together regardless of asset type; the rate difference (Section 111A/112A vs. Section 112) only applies after netting, on the final taxable figure.

Is there a special LTCL-vs-STCG relief for 2026? 

An earlier draft of the Income Tax Bill, 2025 proposed letting long-term capital losses up to 31 March 2026 be set off against short-term gains too. That proposal was dropped from the enacted Act — long-term losses still offset only long-term gains, per the standard Section 74 rule. [VERIFY]

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