Set-off and carry forward of losses for stock market investors & traders

Income Tax Act 1961 Income from Business or Profession
3

Hi @Tony_Almeida

As per the law, STCL can be adjusted against STCG & LTCG and LTCL can be adjusted only against LTCG.
FnO trading is considered non-speculative business income & intraday is considered speculative business income.
You can set off losses of only FnO losses against the capital gains as it is a non-speculative income. Speculative losses can be set off only against speculative income.

  1. You can also set off losses from the “Income from Other Sources” head.

Refer to Set Off and Carry Forward of Losses under Income Tax - Learn by Quicko for more information.
Hope this helps.

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