last year : nil income and i suffered loss in share market 2.50 lakhs . i declared and file the returns .
this year , only income : profit from share market 2.50 lakhs .
as per the rule ; till 2.50 lakhs ; no tax .
so . i declare the profit and file the returns with nil tax .
and don’t set off the the loss of the last year with this year profit and carryforward the loss in the books of accounts !
am i right ?
or do i have to compulsorily/mandatorily set off the the loss of the last year with this year profit and can’t carryforward the loss in the books of accounts ?
It is mandatory to adjust the loss against the profits. The remaining loss can be carried forward to future years. When you prepare your Income Tax Return and enter the data of your incomes and losses, the utility or tax filing software shall automatically set off the loss against the existing incomes of current year. Only the remaining loss can be carried forward to future years.
I would like to know the difference in BFLA and CFL while filing Tax Return in the context of following
How do I identify if my loss needs to be categorized as BFLA or CFL while filing in Quicko?
If I have “Loss in House of Property Income” due to paying home loan interest within the last 8 financial years and I have declared that in that year’s ITR, I have also got benefit of reduction in taxable income, Can I claim that as BFLA or CFL in the next financial year?
If I have paid Muncipal Taxes on the Self-Occupied House, can I claim that as Loss from House Property as BFLA or CFL?
Newbie here. Not sure if this has been asked before. Had to sell my digital gold assets at a loss (about 5K) in FY 2021-2022. I was wondering if I could offset my STCG (about 30K) . If yes, how do I go about doing that?
Say I have a loss of 2Lacs in FnO trading current FY and I carry it forward, can I offset it next year against income I receive from other sources like the money I earn teaching tuition to children? This income would be considered income from other income, right?
Loss from F&O is considered as non-speculative business loss which can be set-off against all income except salary income in the current year.
It can be carried forward for 8 years and can be set-off only against Speculative & Non-speculative income in the subsequent years.
No, you cannot offset it against Tuition income.
Yes, it would be classified as other income. But, if such income forms a significant part of your total income it is best to report it as freelance income which will fall under the head Income from Business/Profession. (you can deduct expenses if considered as freelance income)
Hello, I had carry forward loss from AY 2020-2021 for long term capital gain which was partially offset during AY 2021-2022. Now while filing for AY 2022-2023 against which year should I enter the amount for? AY 2020-2021 or AY 2021-2022?
Example:
Filing for AY 2021-2022
2020-21 Long Term Capital Loss Brought Forward = 100000, Set-Off = 75000, Carried Forward = 25000
Now filing for AY 2021-2022
Which year that Long Term Capital Loss Brought Forward should be applied to?
I have dividend income and I also have losses from the previous year and current year business & capital gain loss. Can we setoff this again dividend income? I can see quicko tool is not setting off these losses against dividend income.
Hey, previous year’s losses are not prefilled automatically as there could be a change in the carry forward of loss from the Income Tax department which we cannot track. Thus for accurate reporting, you need to report it manually.
Hey, you can set off your losses from non speculative business loss which includes loss from F&O against any income except salary in the current year. However, you cannot set off your capital loss or speculative business loss against dividend.
@Sreetama_Chakraborty But how to do that in Quicko? Because in BFLA section you can only show losses and how to show adjustment that was done in FY 20-21?
My FnO loss is 2 lakh and my LTCG is 1.3 Lakhs.
what is the amount of LTCG that can be set off against FnO loss.? Since we know that LTCG amount above 1 Lac is taxed at 10%. So am i eligible to set off 30 thousand from 2 lacs and then carry forward 1.7 lacs as losses or the full amount of 1.3 lacs will be set off against FnO loss of 2 lacs and hence the carried forward loss will be 70 thousand.
Please clarify.
Hello Expert,
Following are my Questions,
I am doing share market trading , so i had filled ITR-3
I had filled FY2020-21 and shown 13 Lacs loss. As per my understanding this will be carried forword for 8 years. But this year i.e FY 2021-22 till now i could not able to file the return and this year also i am having losses. so my question is if i file now can we able to eompensate in future , which i had shown in FY2020-21 lossess ? please answer
As per the Income Tax Act, if you had filed the return within the due date for the financial year in which you had incurred the loss, you will be able to carry forward the same.
However, for the financial year in which the loss had occured and the return was not filed within the due date, you will not be able to carry forward that loss.
For FY 2021-22/AY 2022-23 the due date to file the return was 31st July 2022. If you have filed the return on or before 31st July 2022, only then you will be able to carry forward the losses for FY 2021-22.
For FY 2020-21/AY 2021-22, if you had filed the return within the due date, you will be able to carry forward the loss to the next subsequent financial year.
