F&O loss with professional income

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If you have both professional income (declared under 44ADA) and Futures & Options (F&O) losses, you'll need to file your Income Tax Return (ITR) using ITR-3. The F&O loss is considered a non-speculative business loss and requires a balance sheet for its declaration. Crucially, the F&O loss can be set off against your professional income, which is the correct procedure.

Nikhil Sharma

Nikhil Sharma (Querist)
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12 July 2024 Dear experts,
In AY 2023-24, assessee had only professional income hence we had filed his ITR under 44ADA. But this Year In 2024-25 assessee has f&o Loss along with professional income.

However in f&o loss, filling balance sheet is mandatory, considering the f&o loss, pls let me know how to show his professional income in ITR-3.

Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 July 2024 You can continue with sec. 44ADA for professional income declaration. File financial statement only for F&O transaction under normal assessment.

Nikhil Sharma

Nikhil Sharma (Querist)
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12 July 2024 Should I report f&o transaction under speculative Activity, and financial of only f&o transaction??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 July 2024 F&O is non-speculative business.
Yes, financials of only F&O business activity.

Nikhil Sharma

Nikhil Sharma (Querist)
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17 July 2024 Sir, I have report professional services in 44ADA, and have reported f&o loss in normal p&l, but it has adjust the f&o loss from professional income, is it correct??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 July 2024 Yes, correct. Set off of losses intra-head.

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