Carry forward and setting off of FnO loss

ITR 303 views 2 replies

Poppy

Professional

3 Points Joined July 2019

Hi guys, I have a question regarding carry forward of losses. Suppose I have 5 lakh loss in FnO trading, 1 lakh profit in LTCG, and 10k in savings account interest.

My CA is telling that I have to set off my FnO loss by LTCG and interest amount. That means I can carry forward loss of only 5lakh - 1 lakh - 10k = 3.9 lakh.

But in this way I am losing the exemptions that government gives. LTCG upto 1 lakh is already tax exempted and savings account interest upto 10k is also already tax exempted.

So I am losing 1.1 lakh exemptions. Also I am not able to carry forward the entire loss. this feels strange. So I thought I will ask some guys here.

Any suggestions.

Replies (2)

rama krishnan

12244 Points Joined May 2017

Your auditor is correct

Even after setting off my loss with LTCG and interest, can I still claim deduction of the savings interest 10k under section 80TTA?

This way I can at least get some exemption. Otherwise it's a double whammy for me - reducing carry forward loss by 10k and also not getting the 10k exemption the govt is giving to all taxpayers