This discussion clarifies how derivative losses are treated for tax purposes. Losses from derivatives are first adjusted against your other income, even if that income is below the taxable threshold. Any remaining loss can be carried forward, but business losses cannot be offset against capital gains.
17 August 2025
I have less than 3 lakh other income but large LTCG. I also have some derivative loss.
my f&o loss is getting adjusted against other income , not from LTCG. Does the loss gets adjusted from other income before LTCG, even if other income is below taxable value
17 August 2025
Yes, it gets adjusted from other income till it gets nullified. If any thing excess gets carry forward. The business loss cannot be adjusted against capital gains.