@Surbhi_Pal thanks surbhi,
that means the order is defined in act, why we say it is not defined.
illustration if we change the order of set off-
Setting off losses with other heads is no more valid, if the losses from housing are compensating housing profits and left no profit for carry forward losses . Am I right?
example: housing profits in a FY - 300000
losses(housing in same FY) - 300000
carry forwarded losses - 100000
so 100000 can not be adjusted with other heads and again carry forwarded to next year, is not it? but if we change the order of set off, then 100000 can be set off in same FY with other heads⌠thanks!!
One general question - If someone in old tax regime had F&O loss carried forward from last 2 years. Can that loss be carried forward to new tax regime this year?
(Read the blog but still wanted this clarification)
The F&O losses will be first adjusted against the current yearâs income, i.e. profit from the presumptive business, interest income and STCG (in the same order). The remaining losses(if any) will be carried forward.
Brought-forward STCL can be set off only against STCG and LTCG in the current FY. However, firstly the current yearâs gains will be set off against F&O losses and then the brought forward STCL.
My presumptive business turnover is 20 lakh, my profit is 50% which is 10 lakh,
My F&O losses are 2 lakh,
My STCG is 1 lakh,
My interest income is Rs. 50000
Given above data, and as per info you provided in previous response, my F&O losses will be first adjusted against presumptive business income.
So after adjusting the F&O losses against my business income, my income under B&P will be Rs. 8 Lakh.
So as my overall B&P income will be below 50% of my presumptive business turnover, will I be required to do Audit?
Before loss adjustment, my presumptive B&P income did not required audit, but after loss adjustment will the B&P income require audit?
There is no such sequence for the set-off of losses mentioned in the IT Act, however, according to the Income Tax utilityâs behaviour, the losses will first be set off against interest income, then STCG followed by LTCG.
An audit will be required if the income from the profession falls below 50% of the turnover.
Your income from your profession does fall in this criteria after the losses set off. Following a conservative approach, it is better to get an audit done.
I have long term Capital gains and also F&O losses. Can i show capital gains profit amount against F & O losses. Whether both comes under non- speculative ? Can you pls suggest
Yes, you can set off the losses incurred in F&O trading against the long-term capital gains specifically for the same year.
Further, the income generated from F&O trading will be reported as Non-speculative business income under the âIncome from business and professionâ section, whereas the long-term capital gains will be reported under the âIncome from capital gainsâ section when filing the income tax return.
If you have incurred losses in F&O trading during the current year, you can offset these losses against the incomes earned in the same year, except for salaries. This means that if you have losses in F&O, you can only set them off against the long-term capital gains of the current year.
Furthermore, any F&O losses that are carried forward can only be set off against F&O gains and not against any other incomes.
It would be very helpful if someone clarifies the following doubt of mine:
In financial year 22-23, I had STCL of âš 1.05K, LTCL of âš 4.6K and F&O Loss of âš 1.76K.
Now during IT return filling last year, I neither carry forward or set off any losses.
Can I now use loss of previous years to set off the profits of current financial year i.e. 23-24?