Loss adjust

File ITR 3....

F&O loss can be set off against interest income, but not against Salary head.

If any excess same can be forwarded for next eight years.

If the F&O loss arose from trading recognised stock-exchange derivatives, it is generally treated as a non-speculative business loss. Report the F&O turnover and profit/loss under business income in ITR-3; salary and interest income are reported in their respective sections of the same return. Do not use ITR-1 or ITR-2.

A current-year non-speculative business loss can generally be set off against income under other heads except salary—so it may reduce taxable interest income, subject to the applicable set-off rules. Any balance can generally be carried forward for up to eight assessment years and set off against future business income, provided the return is filed by the due date under section 139(1). Confirm the F&O turnover, expenses and loss calculation before filing.

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F&O loss with salary and interest:

• File ITR-3. The current year F&O loss (non-speculative business) can be set off against interest income (other sources) and capital gains, but not salary (Sec 71(2A)). The rest carries forward 8 years against business income (file by the due date).