IF A TRADER MAKES LOSS IN A ( PARTICULAR FINANCIAL YEAR ) HOW HE SHOULD TREAT HIS BUSINESS EXPENSESS FOR THAT PARTICULAR YEAR @ShubhS9
Add the expenses to incurred loss and carry forward the total loss amount to next year.
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As rightly said by @t7support, you can claim all your business expenses and carry forward the total loss to the next financial year.
One most important reason to file with F&O trading is to be able to benefit from losses you have incurred.
Don’t worry if you have suffered a loss; just include and report it in your tax return. It can be adjusted using income from the remaining heads, including rental or interest income (cannot be adjusted against salary income).
For a period of eight years, any non-speculative unadjusted loss may be carried forward. Though, in the future, they can only be adjusted from non-speculative income.
A loss from F&O trading is seen as non-speculative. Stock trading throughout the day is regarded as a speculative loss. Additionally, it can only be offset by speculative income. Unadjusted speculative losses can be carried forward to four years.
Here’s a read for your reference on Expenses a Trader Can Claim in ITR - Learn by Quicko and Set Off and Carry Forward of Losses under Income Tax - Learn by Quicko