Capital Loss

byPaytm Editorial TeamLast Updated: December 12, 2025

Meaning & Definition

Capital loss occurs when an asset is sold for less than its purchase price. It is the opposite of capital gain and can be used to offset taxable gains in certain cases.

Key Features

  • Loss on sale of assets
  • Reduces taxable income
  • Can be short-term or long-term
  • Helps in tax planning

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