New Tax Bill 2025 Allows Long-Term Capital Loss to Offset Short-Term Gains from 2026-27

swift Summary

• the article discusses a significant change proposed in IndiaS Income Tax Bill 2025.
• Starting from the tax year 2026-27, taxpayers will be allowed a one-time set-off of long-term capital losses against short-term capital gains (STCG).
• This move is aimed at providing flexibility to taxpayers adn aligning tax rules to evolving financial strategies.

Indian Opinion Analysis

The proposed amendment in the Income Tax Bill 2025 introduces a new way for individuals or businesses to manage their capital gains and losses effectively.By allowing the one-time set-off of long-term capital losses against STCG, the government is enhancing taxpayer fairness while possibly boosting investor confidence in India’s financial markets. This represents progress towards modernized tax policies that accommodate real-world investment scenarios. While this flexibility may incentivize asset diversification, its broader fiscal impact-especially on government revenue-would require careful monitoring post-implementation.

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