Hello Sir/ Ma’am,
Once I file my F&O losses in ITR3 before the due date, does it get carry fwdd automatically for 8 years? or do i have to fill out the loss details every year under BFLA Schedule so as to carry fwd it every year ?
You need fill the details
You mean that every year the previous year’s losses has to be enterd in the BFLA schedule ? else it get voided?
Losses from F&O trading (classified as non-speculative business losses) are first adjusted via Schedule BFLA of ITR-3 and, if unabsorbed, carried forward to Schedule CFL for up to eight assessment years.
Thanks for your reply. What I mean to ask is that as you said “if unabsorbed, carried forward to Schedule CFL for up to eight assessment years”… does this require that the previous year’s unabsorbed loss be manually entered this year in the ITR ? .. or manual entry not required as it was already registered via last year’s ITR filing?
Hi @sann,
When you file your F&O losses in ITR-3, the losses will be automatically carried forward for 8 years, as long as you file the return before the due date. However, every year, you will need to enter the carried-forward loss details in the BFLA (Balance Sheet and Losses to be carried forward) schedule in your ITR.
If you skip the BFLA section, the system won’t recognize your unadjusted losses, meaning you won’t be able to use them to reduce your future tax liability. So, it’s important to fill out this section each year to keep those losses active and use them against any future gains.
Hope that clears it up!
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That is what I wanted to know. Your reply was detailed and informative. Thanks a ton..
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This is a bit strange. Shouldn’t all losses be carried forward automatically ?
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Thanks.. Your above quote made it sound as if one has to manually key this in every year. I believe this is not the case is what you are confirming. Right ?
Yes she is saying the same that previous year losses will be carried forward but you will have to enter manually about the same in CFL section in current year (which ideally should be automatic but it isn’t). @Diti_Savalia
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Yeah so I was expecting that it should automatically get pre-populated
You need to enter manually in section CFL and not BFLA. Kindly confirm @Diti_Savalia
Hey @Nishant_Khandelwal,
Yes, you need to enter the previous year’s unabsorbed loss manually in Schedule CFL.
BFLA is auto-populated only for losses already recognized by the Income Tax Department from previous returns filed through their utility.
To clear the confusion, CFL is for manual entry for carried forward losses and BFLA is auto-populated, not used manually.
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