Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Current Year Loss Adjustment to Savings Account Interest

367 views

Save Share

rakesh bs

5 Points Posted on 20 July 2023

Hi Everyone , i have a question about Current Year Loss Adjustment with the Income from Savings interest.

I have a loss from FNO trading of approx 5500 Rs and Income from Savings bank of approx 3500rs. I am filing ITR for FY 2022-2023 and through one of the online portal. Here they adjusted loss from FNO for current year with the savings bank interest. So from 5500 loss , they adjusted 3500 income from savings interest and carry forwarded 2000rs.

My Question is when IT dept exempting income from savings account upto 10000 rs , adjusting as above is correct method ? Since interest from savings account is below 10000, should it not be completely exempted and entire 5500 rs should be carry forwarded as carry forward loss ?

If above method is correct , then how can tax payer completey utilize the 80TTA Exemption ?

Please guide.

Replies (5)

Quick Summary

This discussion clarifies how current year losses, like those from F&O trading, are adjusted against savings account interest income. The tax department first sets off the F&O loss against savings interest before considering Chapter VIA deductions like the 80TTA exemption for savings interest up to Rs 10,000. Therefore, even if your savings interest is below Rs 10,000, the loss is adjusted first, and only the remaining loss can be carried forward. This ensures losses are utilised efficiently before exemptions are applied.