Long Term gains & FnO losses adjustment

Taxation
1

Team,

I need help understanding how the long term capital gain is adjusted with F&O losses of an year.
1lakhs capital gain is exempted from taxation but will it be offset against the F&O losses ? or can the complete F&O losses be carry forwarded to next year >

Example: Long Term capital gain is 80000 and F&O losses is 200000 so in this case how will loss be adjusted to 80K capital gains or since 1lakh of LTCG is exempted so the complete 2lakh losses are carry forwarded ?

3

Hey @Sairamgv @Pai,

The long-term gains are first adjusted against the F&O losses and then the remaining losses will be carried forward which is, ₹1,20,000 in your case.

Hope this helps!

4

Is audit necessary for adjusting FnO losses against LTCG

5

Hey @Jayadratha,

Your audit applicability depends on your turnover. Losses can be carried forward without a tax audit.

Hope this helps!

6

But 1lakh LTCG is exempt right? so shouldn’t the total F&O loss be carry forwarded

7

Hey @Sairamgv,

LTCG up to ₹1L is exempted. However, while calculating the tax liabilty, the losses are first adjusted against the gains and the exemption is allowed on the remaining gains.

Hope this clarifies.

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