Regd income tax on profit through option trading

Hello,

          Suppose if someone earned a profit of 1 L through options trading (FnO) in the month of March 2020 and thereafter lost same amount in the subsequent month i.e April, May 2020 through options trading, then either one have to pay income tax of 30% of 1 L = 30000/- for the FY 2019-20 or one can carry forward this profit to the FY 2020-21 to adjust against loss instead of paying tax.

           Thanking you

Replies (3)
Quick Summary
This discussion clarifies the tax implications of profits and losses made through options trading (FnO). It explains that profits earned in a financial year are taxable in that same year and cannot be carried forward to offset future losses. Conversely, losses incurred can be carried forward to be set against profits in subsequent years. The conversation also touches on seeking advice for filing tax returns.

No, You can not carry forward Profit, you have to pay tax on that profit...

Any Profit accrued in any financial year, the tax associated to that profit is due in that same financial year.

Any loss occurred in any financial year, you are allowed to carry forward that loss to be allowed to setoff in future years.

Thanks for the reply...Is it advisable to avail online CA services to file IT return or better to find out any CA in locality ?

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