Divakar Vijayasarathy, Founder and Managing Partner, DVS Advisors LLP replies: Short-term capital loss on equity oriented mutual funds can be set-off against long-term capital gains of debt mutual funds. There is no restriction on the type of mutual funds for setting off capital losses. The taxable long-term capital gains shall be Rs 1,97,340 (set off of short-term capital loss of Rs 1,53,400 against long-term capital gains of Rs 3,50,740). The said long-term capital gains shall be taxed at the