CAPITAL LOSSES IN INVESTMENTS: A GUIDE FOR INDIAN INVESTORS

Capital losses are a common occurrence in investments and can be caused by various factors such as market volatility, economic downturns, and company-specific issues.

Indian investors can claim tax benefits on capital losses by offsetting them against capital gains in the same financial year.

Investors can also carry forward capital losses for up to 8 years and offset them against future capital gains.

It is important for investors to keep track of their capital gains and losses and maintain proper documentation for tax purposes.

Diversification of investments across different asset classes and sectors can help mitigate the impact of capital losses.

Investors should also conduct thorough research and analysis before making investment decisions to minimize the risk of capital losses.

In case of significant capital losses, investors should seek professional advice and consider restructuring their investment portfolio.