Carry forward and set-off losses

Hi @alark123 , @Shivan_Giani,

You can find all the details regarding set off and carry forward losses here :smile:

Suppose, I have done buy sell, for some share profit and for some future option loss. Take 100 rs transaction 40 loss and 60 profit after a year transaction. Then tax i should pay for 60 + -40 means for rupees 20 mine tax are calculated right ???

Hi @Tapan_Pratap, you can set off Future and Options losses only against other business income and not against your capital gains, ordinarily. But if you show the trading of shares under your Business then you can set off them against your loss. Hope this help, let me know if you need any further help. :blush:

Hello,
I had incurred some F&O intraday losses in FY 2015-16 and 2016-17. However I missed to add under carry forward loss. Can I add those now as it has a carry forward period of 8 years?

Hi @djdusmanta_sahoo

Any loss can be carried forward to the subsequent years only if the ITR for the year, in which such loss in incurred, is filed on or before the due date as prescribed under section 139(1).

Therefore, you cannot carry forward such losses since it is not reported in the relevant year’s ITR.

:slight_smile:

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Dear sir,

I have lot of confusion regarding f&o trading tax returns. I am giving the complete details below. Pls go through and let me know if it is possible to help me and I will pay the required amount.

  1. During fy 2020-21 I did f and o trading and made 9 lakh loss. I don’t have any other sources of income and I want to carry forward the losses to next year.

  2. I filed the returns in Dec 2021 before deadline with the help of a friend which had many mistakes.

[3 it possible to correct the ITR with the help of you now?

4.my turn over is less than 1 cr. I want to show some expenses for running the f and o business. Is it necessary to show book of accounts. If book of accounts is needed will you prepare it on behalf of me

Regards

I.Ravindra

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Hi @Ravindra_Inapakolla, yes we can help you file the revised return before 31st March 2022 and you can consider opting for a plan from the following link. Otherwise you can also send us a mail at help@quicko.com and we will be able to assist you with your return filing. :blush:
Let me know if you have any further queries, would love to help you.

Dear sir,

I have lot of confusion regarding f&o trading tax returns. I am giving the complete details below. Pls go through and let me know if it is possible to help me and I will pay the required amount.

  1. During fy 2020-21 I did f and o trading and made 9 lakh loss. I don’t have any other sources of income and I want to carry forward the losses to next year.

  2. I filed the returns in Dec 2021 before deadline with the help of a friend which had many mistakes.

[3 it possible to correct the ITR with the help of you now?

4.my turn over is less than 1 cr. I want to show some expenses for running the f and o business. Is it necessary to show book of accounts. If book of accounts is needed will you prepare it on behalf of me

Regards

I.Ravindra

1 Like

Dear Sir/Madam,
I have filled my IT return for FY 2020-21 to carry forward my F&O,equity losses.I have also some loss on FY 2021-22 for F&O,equity intraday.Sir I decided that I will never do any F&O trading /Equity intraday from current year(FY2022-23).If possible I don’t want to carry forward F&O/Equity intraday loss becoz of I will never do any F&O trading /Equity intraday. For tax filling purpose, What Should I do or which Quicko plan I have to choose.Please reply as soon as possible.

Hi @sd9871, if you have stopped trading in F&O/Intraday and don’t have any other business income/ freelancing income/ professional income, you will have to file ITR-2. We can help you with filing your ITR. I have sent you a personal message, please respond there and we would be able to take it forward. :blush:

Hi

I need clarification regarding carrying the FNO loss for next year. Here is the case:

  1. I have STCG of Say 5 lac in the current financial year
  2. I have Intraday Equity Loss of ( - 1 lac )
  3. I have FNO Loss of ( -4 lac )

I would like to know how much LOSS that I can carry forward ?

Just to add as of now when I try to fill in the ITR details on your website it set off the loss from FNO with STCG But what if I wanted to pay 15% tax on STCG and Carry forward the Losses in Intraday and FNO for next year. How can we do that? As if STCG is used to Setoff there would be no Loss to carry forward but next year if I have a profit in FNO I would have to pay as per my income tax slab which will be more than 15%.

Thanks

1 Like

Hi @shubhamwatta, the Income Tax has codified that you will need to set off losses against your profits while filing your return. The utility at Quicko is also built that way and will automatically do it for you. You can’t choose to pay tax at 15% on your STCG and carry forward losses without setting off your losses.

2 Likes

Hello,

I am a Sr. Citizen.

I need to revise FY 2018 19 return to include F&O losses. I had already filled ITR1 form and is processed.

My FnO losses are to the tune of 1.12 lacs so I shall require Tax audit.

Can I revise ITR1 filled previously to ITR 3 with Tax Audit? What is the revised due date for the same? Shall I be levied any penalty?

I have paid 30k taxes already so if I revise to ITR3 and show losses, can I offset the losses against FD interest income and claim refund of already paid tax in previous year?

Thanks

I had STCL of Rs 5000 and LTCG of Rs 45000 in FY 2019-20. When filing ITR, the STCL got automatically adjusted against LTCG. Is it possible to adjust STCL of FY 19-20 against STCL of FY 2020-21?

Hey Sakshi,

The Income Tax rules for set-off and carry forward of loss are auto-calculated when you file your Income Tax Return. So, the taxpayer does not have an option to adjust a specific loss against a specific income. Instead, as per the set-off rules, a loss is set-off in the following manner: intra-head i.e. same income head for current year, inter-head i.e. different income head for current year and remaining loss is carried forward to be set-off against future incomes. You can read more about Set Off and Carry Forward Losses under Income Tax Act here.

Can we offset the gain in foreign shares against the loss in Indian stock markets?

Hey Divyesh,

STCL can be set off against STCG and LTCG while LTCL can be set off against LTCG only. STCG and LTCG covers any capital asset. Thus, loss from foreign shares can be set off against gains from domestic shares.

You can read more about Set Off and Carry Forward Losses under Income Tax Act on our Learn Center

Can LTCG offset with LTC Loss with the shares of the companies closed and not being traded in exchanges?

Hey Parth,

Long Term Capital Loss (LTCL) can be set off against Long Term Capital Gains (LTCG). However, you can not set off LTCL against Short Term Capital Gains.

Can I set off loss from stocks against my salary income for that financial year?