F&O Trading

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This discussion clarifies tax obligations for F&O traders with a turnover of ₹1.5 crore and a loss of ₹5 lakh. While a tax audit isn't mandatory, filing an ITR3 under normal assessment with maintained books of accounts is advised. Importantly, F&O losses can be set off against dividend income, interest, and long-term capital gains, but not against salary income.

Harshit Agrawal

Harshit Agrawal (Querist)

08 March 2025 My turnover is 1.5 cr I have not opted for presumptive taxation in any previous year and I have loss of 5 lac will I need audit or I can file normal itr under no account cases in itr3?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 March 2025 Tax audit not mandatory, but file ITR under normal assessment with books of accounts maintained.

Harshit Agrawal

Harshit Agrawal (Querist)

08 March 2025 I have dividend income and interest of 2.5lac will it be setoff against the loss.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 March 2025 Yes, eligible..

Harshit Agrawal

Harshit Agrawal (Querist)

08 March 2025 Thanks you for the support sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 March 2025 You are welcome.

Harshit Agrawal

Harshit Agrawal (Querist)

08 March 2025 I also have ltcg gain of 4 lakh so will it be setoff against f&o loss?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 March 2025 Yes, if you have (non speculative) business losses, they can be set off against income from house property, capital gains, or other sources (but not against salary income).

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 October 2025 Good luck...

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