FnO Losses Vs FD Interest Income

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This query is : Resolved

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This discussion clarifies how to report Futures & Options (FnO) losses for tax purposes. It confirms that FnO losses can be offset against interest income from Fixed Deposits (FDs), though not against salary income. The user also inquired about tax audit requirements, and it was clarified that a tax audit is not mandatory for their situation given their FnO turnover is below £6 Lakhs. The conversation also touches upon the need for specific financial statements when filing FnO tax returns and seeks resources for DIY filing.

Kalai

Kalai (Querist)
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16 October 2021 I have few questions with respect to how FnO losses can be reported in income tax returns filling

- I have FnO losses as well as some interest income for this FY. I am a salaried person and as far as I understand, I can't offset FnO losses against salary income. But, is it allowed to offset FnO losses against the FD interest income?

- Since I have FnO losses, I have read in few forums that I have to do some tax audit before filling the return. Is the tax audit mandatory in case of FnO losses before filling returns? I do not have high turnover in FnO and is less than 6Lakhs, whereas my salary income is around 16Lakhs

- And finally, I have never done tax filling for FnO before. So can someone recommend me any DIY articles on this or videos that I can refer on how to file FnO tax returns.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 October 2021 No need for tax audit.
Set off the f and o loss against interest income.

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Kalai

Kalai (Querist)
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16 October 2021 Thank you for your response. Can you recommend me some DIY article on how to file FnO losses? I have seen some articles stating that I have to prepare some balance sheet and profit/loss statement for the same.

I file my returns every year but I have never done FnO filling before.

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