Hey @shashank_satyam,
It is mandatory to report losses in the AY in which they are being carried forward and in the AY in which they are being set off. You may not have reported the losses as Brought Forward losses in AY 23-24 and hence, you are unable to see them in the matrix. However, if the losses were reported correctly in AY 22-23, they will be carried forward.
Can long term capital loss on sale of listed equity be set off of against long term capital gains on sale of immovable property in the same year?
Hey @cvijay,
Yes, LTCL from sale of shares can be set-off against LTCG from sale of property in the same year.
I have done only 2 trades in the entire year, where I incurred 1.5 lakhs in loss. My broker Motilal Oswal shows it as speculative loss in the capital gains statement. Read it all other places that it is a non speculative activity, that is, a non speculative loss. Confused how to show the loss on my return as a non speculative loss where I can deduct it against my other income or speculative loss. As it is just 2 trades I did. Please clarify. Thanks in advance!
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:
Hope, this helps.
Hi, I have a doubt regarding surcharge on net income. Consider that XYZ has a taxable salary income of 60 lakhs. Since it is more than 50 lakhs, there will be a surcharge of 10% on it. However, if there is also a business loss (for eg FNO trading) of 20 lakhs, the net income for the year becomes 60 lakhs - 20 lakhs = 40 lakhs.
I understand that business loss can not be offset against salary and the income tax on salary will have to be paid, but is a surcharge of 10% will still be applicable on the salary income even thought the net income for the year is less than 50 lakhs?
Thank you.
Hello @vikram123 ,
Surcharge is based on your net taxable income from all heads. In the case described by you, the net taxable income will be the salary income which is ₹60 Lakhs as the business loss cannot be set off against salary. Hence, surcharge will be levied @ 10%.
Hope this clarifies!
Thank you @CA_Niyati_Mistry.
I have brought forward losses in a Partnership Firm. If I start trading in Futures and Options through the firm’s account, can I adjust my profits in trading with brought forward losses of the firm?
Hello @INDTAT
Partnership Firm is a separate identity holding a unique PAN. Income Tax allows set off of losses against the same PAN. Since your PAN will be different than Firm’s PAN, profits on your PAN can not be set off against losses in Firm.
Thank you.
Please excuse me for my incomplete question. I intend to trade in my firm’s account itself. So, whatever profits that I make in my firm’s F&O trades can be set-off against the brought forward losses of the same firm?
Hi @INDTAT
Trading in F&O is considered as Non Speculative Business Income.
Thus, profits from F&O is Business Income and can be set off against any brought forward Business & Profession losses. Please note that brought forward losses can be set off only against same head of Income in the future years.
For detailed understanding on Carry forward & Set off of losses, you can refer below article:
Thank you.
Thank you once again for your reply.
Our firm’s original business was that of exports. Since the past few years, we have stopped this activity and we are incurring losses every year to manage the office and keep the firm active.
It is these losses that we intend to set-off against income in F&O under the firm’s name. Please confirm if this is possible under the Income Tax laws.
Hi @INDTAT
Yes, the business losses from Export Business can be set off against profits from F&O since both are covered under Income from Business & Profession head.
Please make sure the ITR for export business is filed on or before the due date and losses are mentioned and carried forward in ITR.
Thank you.
Hi Akash
Thank you so much for your clarifications.
Have a good day 
Hello @Shrutika_Shah and All,
could anyone please help me with below query please?
Housing property losses are set-off with same head and finally with other permissible heads in same FY(with limit 2 lakhs) and under same head for carry forwarded years.
Query: What is the order while setting of carry forwarded housing losses ? (1) current year losses due to (i)letout (ii)self occupied (2) previous year carry forwarded losses (i) most previous year (ii) recent previous years.
Thanks!!
Housing property losses are set-off with same head and finally with other permissible heads in same FY(with limit 2 lakhs) and under same head for carry forwarded years.
What is the order while setting of carry forwarded housing losses ? (1) current year losses due to (i)letout (ii)self occupied (2) previous year carry forwarded losses (i) most previous year (ii) recent previous years.
Thanks!!
Hey @Blue_Sky,
There’s no preference given while setting off current year house property losses from let-out or self-occupied property. Moreover, firstly the current year losses are set off against the profits. After that, the carry-forward losses are set off in a FIFO(first in first out) manner. That is, the losses from the most previous year will be set off first.
Hope this helps!
Hello @Surbhi_Pal
Thanks for replying…
But if there if the order is not defined, then it’s better for the tax payer to setoff previous (most) year losses first and then the same year losses. The reason being, same year losses can be compensated with other heads while previous years are not , also there are changes of carry forward losses not used and collapse at the end of 8 years.
Am I correct??
Hey @Blue_Sky,
There’s no order while setting off losses from let-out or self-occupied property. But, according to the Income Tax Act, firstly, the current year losses are st-off and then the carry forward losses.
Hope this clarifies!