FnO loss set off

Taxation
21

full context?
in conventional scenario, you report it as dividend income under “other sources” and is taxed at slab rates.
spec and non-spec is context of business income, dividend need not be business income.

22

i want to know if it is possible to set off intraday loss with dividend income.

23

no you cant

24

Hi @Quicko

Say in a particular year, i have no other income and only 1.5 L as LTCG and 50,000 as STCG. Do still i have to pay LTCG and STCG Tax as my total income is below exemption limit ?

25

IT Calculator, Income Tax Department

use this official calculator to clear your doubts

26

Hey @nishant91191,

As the total income is below the basic exemption limit, there will be no tax liability.

27

Hiii…can the carry forward fno loss for next year be setoff against future ltcg tax of mutual funds gains??

28

Fno loss can be setoff with some other income like interest, capital gains in current year only.
Only salary income isn’t allowed.

From 2nd year, it is setoff only from business income, both speculative and non-speculative

29

Hi @Tippu_Ajmal,

No, F&O losses are considered non-speculative business losses, and they can only be set off against other business profits when carried forward.

30

Hi - Can someone help me understand if I can setoff dividend income in 23-24 against F&O losses carry forwarded from 22-23 year?

31

Hi @greenflaw,

No, carried forward F&O losses can only be set off against business income in the subsequent years. Hence, your dividend income will not be adjusted against these.

32

hi- i have filled my f&o losses in ITR-3 in last year. This year i have got some STCG capital gains. Can we set off this gain against previous F&O Losses.

33

no you cant. only in current year loss, can setoff happen with some inter heads

34

You can only set off your previous year’s F&O losses with business income, @sandeveni_sateesh - You can’t do that against your capital gains.

Capital gains set off can only be done in the year of loss.

35

Hi

In which schedule and section we have to show FnO loss
Can you please show with screenshot as many website tells but can’t know where and how to set off it.

36

Hi @Kumar_Thakkar,

This article includes a step-by-step guide to report your F&O income.

Once you report the losses, they are automatically set-off against the eligible incomes.

Hope this helps!

37

@Quicko

Hi @Quicko ,

I would like to know about carry forward loss set off rule (subsequent years) in below scenario.

FY 2022~23 FnO loss 13,00,000. IT return filed within due date and declared loss. (Allowed to carry forward for next 8 years)

FY 2024~25 Planning to sale plot/land (holding this plot for 8 years). Plot is within urban/metro area. Expected Long term capital gain is more than FnO loss of FY 2022~23.

Can I set off FnO loss of past years against profit/LTCG from plot in 2024~25?

Thanks in advance.

38

Hello @muthu.radhakrishnan

FnO is treated as Business Income and as per Income Tax Act, you can set off the Business Income Loss only against the same head i.e Business & Profession Income in the future 8 years.

Thus, in your case FnO loss cannot be set off against the CG from sale of plot/land.

You can also refer to our article on Set off Losses to understand the same in detail.

Thanks

39

@Quicko ,

Thanks for your reply. Can professional/consulting fee be treated as business income? If yes, can it be set off against carried forward FnO loss?

40

Hi @muthu.radhakrishnan

Yes, Professional/consulting income comes under the head “Business & Profession”

Thus, it can be set off against the F&O loss brought forward from the previous years.

Thanks.