Greetings,
I recently bought few mutual funds which is currently giving me loss, the question is, can I book that loss and use it to setoff my F&O Profits to save some tax?
@CA_Anand_Thakor along with such responses,
it would be useful to mention the “why” (and provide any relevant keywords and references, eg. releavnt section of IT-Act).
That way, it is clear exactly why one cannot avail certain exemptions,
and in future what one can do to qualify for the same.
Also enabling interested folks to search the relevant keywords and find out more.
2 Likes
Hi @Ashutosh_Mishra ,
As per Sec 71(3) of the Income tax act, 1961, if there are any losses from capital assets (e.g. stocks, mutual funds, real estate, etc.) then you cannot use them to set off your business income. Basically, capital losses can be set off only against capital gains.
In your case you will not be able to set off losses from mutual funds against your f&o profits as that is your business income.
We hope this clears your doubt.