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.
CAclubindia
