Let’s assume I am having Rs.4,00,000/- FnO losses being carried forwarded in next year after the ITR filing in current year (for FY23-24, or for AY24-25). Now, if I redeem mutual funds and I also have capital gains of Rs.4,00,000/-, then can I set off this entire 4L capital gain in next year ITR (for FY24-25, or for AY25-26) against the 4L FnO losses which are being brought forward from previous years?
Hey @vaibhavshah,
Brought forward F&O losses can be set off against business income only. So you won’t be able to set off your carry forward f&o losses of current year against capital gains in the next year.
Hope this helps!
Thank you, Bharti @Bharti_Vasvani , for providing the clarification.
Yes, you are right. I was just trying out practically to fill a dummy ITR-3 form (without submitting it, of course), and I noticed that current year Business Loss (or F&O loss) is automatically set-off against current year Capital Gain (and other income such as Savings Account Interest etc) in the Schedule CYLA. However, despite bringing forward the previous year losses from the Schedule CFL, they are not set off in the Schedule BFLA against the remaining Capital Gain of the current year.
Thank you once again for prompt confirmation. Much appreciated.