Set off of losses against other income
This query is : Resolved
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19 March 2023
Dear sir / Madam,
My query is as follows:
Mr A who is salaried person, also does options trading. He prepares P&L and balance sheet for options trading business. He has past F&O business losses as well as past short term & long term capital losses in shares trading, which are now carried forward to FY 2022-23. During the year FY 2022-23 also, he has F&O business loss and sizable Other income.
I wish to know whether can he set off past F&O business losses as well as current business losses against the current years Other Income?
Basically, which type of losses are adjusted against other income?
Kindly guide.
Thanks & regards,
Suraj
My query is as follows:
Mr A who is salaried person, also does options trading. He prepares P&L and balance sheet for options trading business. He has past F&O business losses as well as past short term & long term capital losses in shares trading, which are now carried forward to FY 2022-23. During the year FY 2022-23 also, he has F&O business loss and sizable Other income.
I wish to know whether can he set off past F&O business losses as well as current business losses against the current years Other Income?
Basically, which type of losses are adjusted against other income?
Kindly guide.
Thanks & regards,
Suraj
19 March 2023
You can set off Non-Speculative Business Loss (here F&O loss) against any income except salary income. So, you can set off the loss with other income heads except salary income.
You cannot set off LTCL i.e. long-term capital loss against any income other than LTCG i.e. long-term capital gain. Further, you cannot set off STCL i.e. short-term capital loss against any income other than STCG i.e. short-term capital gain, and LTCG i.e. long-term capital gain.
You cannot set off LTCL i.e. long-term capital loss against any income other than LTCG i.e. long-term capital gain. Further, you cannot set off STCL i.e. short-term capital loss against any income other than STCG i.e. short-term capital gain, and LTCG i.e. long-term capital gain.
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20 March 2023
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