FnO loss set off

Taxation
1

Let’s say a person has 1 lakh dividend income, 1.5 lakh FnO losses and 1 lakh equity STCG, and 25000 “other income” .

What will be order of loss set off ?

2

@Quicko

3

F&O losses can be set off against any income except salary

Your net income in this case shall be 75K:

2.25 lks (Dividend + STCG + Other income)

Less: 1.5 lks (F&O Losses)

= 75k

1 Like
4

Hey @raghav.95,

The F/O losses will be set off against the dividend and other incomes first. The remaining losses will then be set-off against your STCG.

1 Like
5

Hi @Quicko

Last year I had net f&o loss ~5 lac but I did not report it in my ITR. Actually I filed ITR-1.
Is there anyway I can set off previous year’s loss with this year’s profit (~1Lac)?
This year I’m planning to file ITR-3.
Thanks

6

Hey @Shivam_Gupta,

In order to carry forward your losses, it is mandatory to report them in the relevant AY and file the ITR before the due date. However, if the losses were not reported, you cannot set them off against income in FY 23-24.

7

STCG loss can set off against FNO profit ?

8

Hey @bharat1080,

No, short-term capital losses can only be set off against short-term and long-term capital gains.