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Adjustment of f&o losses in itr

Satish Chugh (Individual) (23 Points)

15 November 2017

I am trading in F&O and incurred a loss of Rs.2.20 lacs in FY ending 2017 where as my income from other business is 2.60 lacs which is not taxable. My CA has deducted the loss from F&O from my other income considering normal business transactions and filed a return for Rs.40000/- where as I have asked him to carry forward my loss to next year to which he is not agree.Please explain whether he is justified in setting off F&O losses from my other income which is not taxable and how I will avail benefit in case of income from F&O in the coming years.

From:satishchugh53 @ gmail.com

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 15 November 2017

Your CA is exactly correct, as the NET loss can only be carried forwarded after adjustment with current year income/s.

Amitav (Chartered Accountant) (5993 Points)
Replied 16 November 2017

Yes. He is justified.

Satish Chugh (Individual) (23 Points)
Replied 16 November 2017

Dear Sir

If the loss has been adjusted with my current year income (Rs.260000/- ) which was not taxable then how i will claim loss incurred in F&O in coming years.please advise

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 16 November 2017

It is just different way of looking at the situation............. You think your income is 2,60,000/- but as per accounting methods NET total income of the year (clubbing all the heads of incomes) is just 40,000/-, which is below exemption limit........ As the loss were adjusted in the same year with other income heads, question of its carry forward doesn't arise.

Unless you accept the reality........ nobody will be able to solve your issue........