New Delhi, Oct. 22 -- Selling a property at a loss can be financially disappointing, particularly when the purchase price was significantly higher than the amount received. However, under income tax rules, such losses may help reduce the tax liability on capital gains earned from other investments, including shares and mutual funds.

The Income-tax Act allows taxpayers to adjust certain capital losses against capital gains from other assets. However, the benefit depends on how long the property was held, whether the loss qualifies as short-term or long-term, and the nature of the gains against which it is adjusted.

According to CA Chandni Anandan, Tax Expert at ClearTax, a property loss can be adjusted against capital gains from shares a...