Taxpayer Reduces Taxable Income by Rs 25 Lakh: ITAT Delhi Clarifies LTCG Rules

The ITAT Delhi has ruled that long-term capital losses carried forward from previous years, along with current year's short-term capital losses from shares and mutual funds, can be set off against long term capital gains (LTCG). This ruling allowed a taxpayer to reduce his taxable income by Rs 25 lakh, overturning a tax department disallowance. The case involved Mr. Sharma from New Delhi, who had filed his income tax return (ITR) on July 5, 2023.