In case there is no income other income to set off the capital gains losses, you can carry them forward to the next 8 years and set off against the future income.
Hereās an article to help you understand set off and carry forward losses in detail:
Hi @Amar_Vartak, F&O is treated as non-speculative business activity and Intraday trades are classified as speculative business activity. You can set-off non-speculative losses (F&O) against speculative profits (Intraday) when filing your ITR. You can also carry forward the balance to the next financial year.
When filing your taxes through Quicko, you can directly import your trades using your broker login and we take care of its tax treatment.
I have 5lac of F&O loss last year and had filed it in the ITR. This year i have a profit of 2lacs in F&O. How will this be set-off. Will this be a complete reduction of 2lacs or some portion?
Yes that helpsā¦Also, i have 1lacs of Long term gains(unrealised) and 50k of Short term(unrealised gain). If i book all, all profit gets offsetted by loss and my carry forward loss reduces to 1.5lac. Am i right?
Given that remuneration taken from LLP is treated as business income, does it mean that a person can offset loss form derivatives trading with remuneration taken as a partner of LLP?
Partner Remuneration is treated as a business income in the hands of the partner. Loss from derivatives trading is a non-speculative business loss. Non-Speculative Loss can be set off in the current year against any income except Salary. Thus, it can be set off against remuneration income. The remaining loss can be carried forward for 8 years. You can read more about set-off and carry forward of loss here.
FY 2020-21
I have not opted for presumptive taxation. I have F&O loss. My total income excluding F&O loss is more than basic exemption limit. But, my turnover from F&O is not above 1 crore rupees (since all transactions are in non-cash mode, the limit is 5 crore rupees). Is tax audit applicable to me?
Continuing the above situation, what if my total income exclusing F&O loss is less than basic exemption limit?
I needed some clarity on taxes on F&O trading. I have a loss of around 5 Lacs in F&O and a gain of 3 Lacs from short term equity. I wanted to know if I can offset the 5 Lacs loss with 3 Lacs gain from equity? Will I need to pay 15% tax on short term gain or it can be offset with loss from F&O.
I also want to know do I need a tax audit if I want to carry forward the net loss of 2 Lacs.
If anyone can suggest me what is the applied case here and guide me which plan to opt on quicko for filing my return with this scenario, it will be really good.
In case the profit is below 6% of the turnover, and turnover below the threshold and total taxable income less than the basic exemption limit - tax audit it not applicable.
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