Did you know that you can save taxes on Capital Market losses and carry them forward?

Turblent market conditions are something that everyone is hearing now-a-days.We've witnessed the sensex touching an all-time hight of 21k and we felt that there's no lookon back, ever.
There were still people who kept telling us that this is an inflated market and we will soon see a correction.

When the investor confidence was at the optimum best and india seemed to be a market that never will look back, the downside began. And in a few weeks the index tanked by over 5,500 points.
It seems to be doing dance and trying to find a level, which it will eventually over a period of time.

Now why are we giving you a commentary on the most obvious thing that's happening arround us? Well did we ever realize that the happenings in the stock market can effect our taxes? - Personal
Income Taxes that is?

We've been told that any profits need to be taxed either as short term gains or long term gains, but how will the losses be treated?If we are taxed for making gains, is not logical that our losses also
can be squared off against losses.

Well Yes. If we gain we are taxed and if we make losses we can square it off and the best part is that we can even carry forward our losses for thw next eight years.