Can we set off any FNO losses with Long term capital gains in market. If yes, i know that we can carry forward FNO loses after charges for 8 years. Till when we can set off these losses?
F&O (Futures and Options) losses are considered non-speculative business losses under incometax and cannot be set off against Long-Term Capital Gains (LTCG). You can set them off against business income, short term capital gains, or income from other sources.
If you are unable to set off in the current year, F&O losses can be carried forward for 8 years and set off against business income in subsequent years, as long as your Income Tax Return (ITR) is filed before the due date.
To report F&O losses in your ITR use ITR-3 form and report the losses under Income from Business or Profession with proper documentation.
You can refer to this link for more information.
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Hi @Vinoth_Kannan,
Yes, losses from F&O trading are considered non-speculative business losses and these can be adjusted against all incomes except salary. But this is only possible for the same FY.
This means that if you have F&O losses and LTCG in the same year, these can be adjusted. But, once you carry forward your F&O losses, they can only be set-off against other business profits.
The losses can be carried forward for 8 years.
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Thanks for clarification
Hi. What if I have a FNO loss and I don’t want to carry forward. I have long term and short term capital gains unrealised. Is it wise to book gains.