F&O Loss carry forward to next financial year

F&O
1

Is my CA correct? He said F&O are business income and can be set off against business income in the succession year. And cannot be set off against STCG or LTCG.

I had 70K loss in FY 22-23 which was carried forward. This year 23-24 I have STCG gains but he is saying loss cannot be set off against STCG and can only be sett off by business income. Please help!

2

Yes. He is correct. In the year of loss, you can adjust against all types of income (except salary) but in the subsequent years, you can only set off against business income.