Offsetting Carried forward losses

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?

Hi @Ronak_Vishnoi

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.

  1. No, you cannot offset it against Tuition income.
  2. 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)

Read more here: Set Off and Carry Forward Losses under Income Tax - Learn by Quicko

Hope this helps. :slight_smile:

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