what cannont be used by a company to write off its capital losses
Answers
Saving money for your future is always good. With this intention, most of us make investments in various assets to build wealth over a period of time. Investments in real estate, equities, debentures, gold and debt oriented mutual funds, etc. are referred to as investments in capital assets. At the time of sale,one expects these investments to yield a healthy return. However, things may not go according to plan and you may incur a loss. Let’s understand how you can make the most of this situation.
When does Capital Loss arise?
While the profit you make when you sell a capital asset results in capital gains, if there is a loss on such sale, such losses are known as capital losses. Further, the nature of your loss depends on time for which you have held the capital asset. Some losses are short term, and some are long term losses.