Claiming loss will be useful if you have capital gains in FY20

Remember, it is mandatory to file I-T returns by the due date to carry forward losses to the following years

With the Sensex shedding over 25 per cent since the beginning of the calendar year due to the COVID-19 crisis, most equity and mutual fund (MF) investors are staring at significant losses. Many investors, who have booked these losses, will be looking to claim it while filing returns. 

Archit Gupta, founder and chief executive officer (CEO), Cleartax, says: “Investors selling shares or redeeming MFs at below their cost price (investment) will incur capital losses. A capital loss is incurred at the time of sale of an asset, including shares, MFs, gold, and so on.” 
 

Such capital loss can be reduced