Mutual Fund Loss? Turn Tax Rules into Your Benefit!

• Capital loss occurs when mutual fund units are sold below purchase price.
• Losses are categorized as Short-Term (held < 36 months) or Long-Term (held > 36 months).
• Short-term losses can offset both short-term and long-term gains; long-term losses only offset long-term gains.
• Unadjusted losses can be carried forward for up to 8 years, reducing future tax burdens.
• Accurate reporting of capital gains and losses in ITR is crucial to avail tax benefits.