Carry forward losses

I incurred 3 lakh loss in FnO last year. I am having profit of 5 lakh this financial year.Is it mandatory to set off previous year’s loss this year or I can show my income as 6 lakhs and pay tax and carry forward previous year’s loss to next year?


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Hi @Ashutosh_Pandey and, it is mandatory to set off your losses against your profits in the current financial year if you choose not to do it, you wont be able to carry forward it to the next financial year. Let us know if you have any further queries, would love to help. :blush:

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Need clarification regarding previous financial year’s FnO loss if it can be set off against stcg of current year. I had FnO loss of 2.5 lakhs in previous FY. This yea FnO loss or profit us zero and stcg 2 lakhs. Can loss be set off against stcg?

Hi @Ashutosh_Pandey, you cannot set off carry forwarded business losses (FnO loss) against short term capital gains of current year.

Set off of losses is mandatory and not optional