Understanding how Losses get Adjusted
Setting off your incomes against losses from different income heads and financial years can be quite complex due to various Income Tax Department rules. The Loss Adjustment tab helps simplify this by providing a clear breakdown of how your losses are adjusted and carried forward.
Steps to View Loss Adjustment
Go to Tax Computation > Loss Adjustment
What You'll See in the Loss Adjustment Tab
You will find five key sections that help you understand how your losses are treated in your return:
1. Capital Gains Loss Adjustment
Shows how capital gains/losses from:
Stocks
Mutual Funds
Real Estate
Other Capital Assets
are set off against each other based on holding period (short-term or long-term) and applicable tax rates.
At the end of the matrix, you’ll see:
Total Losses Set Off
Losses to be Carried Forward
Net Capital Gains
2. Current Year Loss Adjustment (CYLA)
Displays losses incurred in the current FY across all 5 income heads that have been adjusted against your income.
The CYLA table provides a breakdown by loss head and the amount adjusted.
3. Brought Forward Loss Adjustment (BFLA)
Shows previous year losses successfully adjusted in the current FY.
The BFLA table provides a breakdown by loss head and the amount set off.
4. Losses Lapsed
- These are losses that could not be adjusted against any income and cannot be carried forward to the next financial year.
5. Carry Forward Losses (CFL)
- Displays losses that could not be set off this year but are eligible to be carried forward to future years.
- The CFL table gives a year-wise breakdown of these losses.
Need Help?
Raise a ticket and our support team will help you understand.
Steps to View Loss Adjustment
Go to Tax Computation > Loss Adjustment
What You'll See in the Loss Adjustment Tab
You will find five key sections that help you understand how your losses are treated in your return:
1. Capital Gains Loss Adjustment
Shows how capital gains/losses from:
Stocks
Mutual Funds
Real Estate
Other Capital Assets
are set off against each other based on holding period (short-term or long-term) and applicable tax rates.
At the end of the matrix, you’ll see:
Total Losses Set Off
Losses to be Carried Forward
Net Capital Gains
2. Current Year Loss Adjustment (CYLA)
Displays losses incurred in the current FY across all 5 income heads that have been adjusted against your income.
The CYLA table provides a breakdown by loss head and the amount adjusted.
3. Brought Forward Loss Adjustment (BFLA)
Shows previous year losses successfully adjusted in the current FY.
The BFLA table provides a breakdown by loss head and the amount set off.
4. Losses Lapsed
- These are losses that could not be adjusted against any income and cannot be carried forward to the next financial year.
5. Carry Forward Losses (CFL)
- Displays losses that could not be set off this year but are eligible to be carried forward to future years.
- The CFL table gives a year-wise breakdown of these losses.
Need Help?
Raise a ticket and our support team will help you understand.
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