Can we choose not to report losses in ITR3 if they cannot be carried forward?

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This query is : Resolved

Archana (Querist)

30 August 2026 If someone has loss in f&o and if professional income is already below the taxable limit and by deducting the f&o loss there is no clear benefit but only the professional income will be shown as reduced as the loss will be automatically set off by the system against the professional income, then is it mandatory to show the f&o loss in the ITR3? Can one choose not to report the loss?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

30 August 2026 It is not legally permissible to choose not to report F&O losses in ITR-3. Because brokers report derivative activity directly to the Income Tax Department's AIS, failing to declare F&O trade details creates a reporting discrepancy that will trigger automated tax notices. Even if the loss cannot be carried forward (e.g., due to late filing) or provides no tax benefit, all trading turnover and losses must be disclosed under the PGBP schedule in ITR-3.

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