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

Hi @Hitesh_Sharma

Loss from Futures & Options is treated as Non - Speculative Loss even though they are bought and sold on the same day.

We would recommend you to show it as Non Speculative Loss under the head Business & Profession. Thus, loss from Non - Speculative Business can be adjusted against any other source of Income except Salary Income. Also, preparing books of accounts and filing ITR 3 will be mandatory if you want to report losses in ITR.

For detailed understanding on Taxes on F&O, you can refer the article as below:

Income Tax on F&O Trading

Hope, this helps.