If my sole income is interest from bank FD is 5L, less than the annual exemption limit of 7L, then can the entire loss from my F&O trade (-10L) be carried forward to future years ? If so then how should I report it?
Your F&O loss will first be adjusted against the interest income and the remaining losses will be carried forward. You will have to report the F&O losses under business income and they’ll be carried forward.