Can options trading loss be adjusted against intraday gains?

Vijay_Dobrial · January 20, 2021, 1:08pm

Can options trading loss be adjusted against intraday gains or delivery gains?

ShubhS9 · January 20, 2021, 2:35pm

San78 · January 20, 2021, 5:21pm

Yes, Option Trading Loss incurred in current year (FNO losses) can be adjusted against current year Intraday Gains n Delivery Gains.

Such FNO losses incurred in current year can be set off against all incomes except Salary Income.

It can be carried forward for a period of 8 years.
Carried forward FNO losses can be adjusted only against FNO Income or Business Income in the subsequent year.

Quicko · January 21, 2021, 6:33am

Hi @Vijay_Dobrial,

F&O trading is treated as speculative business income and can be set off against any income except salary. So you can set off your F&O losses against your Intraday gains.
The remaining loss can be carry forwarded to the next 8 years and set off against future incomes.

Vijay_Dobrial · January 21, 2021, 1:07pm

Thx! This forum is awesome btw.

sudheer_kumar · January 27, 2021, 7:00am

Hi @quicko,
Can the FNO losses be adjusted against delivery income(positional equity trading) as well?

Quicko · January 27, 2021, 2:30pm

Hi @sudheer_kumar,

F&O trading is treated as non-speculative business income and can be set off against any income except salary income.
Since delivery based equity trading is treated as capital gains income you can set off F&O losses (non-speculative business loss) against it and carry forward the balance to the next 8 years.