Set Off and Carry Forward Losses under Income Tax Act

Originally published at: Set Off and Carry Forward Losses under Income Tax | Learn by Quicko

Set-Off Losses under Income Tax means adjusting the loss against the taxable income earned; after that, the amount of loss remaining can be carried forward to future years. Therefore, the carry forward losses can be set off against future incomes. The Income Tax Act has, however, specified rules to set off and carry forward losses…

Hi @raj_gupta,

When filing your ITR, the losses are first set off against the respective heads and are then carried forward.
Since F&O trading is treated as non-speculative business income for Income Tax purposes:

  • The losses set off against any income head except salary
  • Carried forward to the next 8 years.

Like always, Quicko has special discounts for Zerodha Traders.

For details regarding ITR filing, you can drop your contact number here.

I earned profit from intraday fno. Where can i adjust it. Can it adjust against shares buying like we do in capital gains?


Intraday fno is classified under Non Speculative Business Income. So profits from the same can be adjusted against Losses from House Property Income or Losses from Other sources Income.

Hope this helps!

I have no loss from other source or income head. Is there any way to adjust this profit?


There is no other way to adjust the profits then.

Since it is Non speculative business income, you can claim all eligible expense incurred for the business.