Set Off FnO Loss against Int on FD

Please show your loss under the head PGBP Profit ang Gains of Business and Profession and not under the head Capital Gain. You may get set off.

FnO transactions are not covered under speculartive transactions.

Sub section (1) and (2) of section 71 are as below

Set off of loss from one head against income from another.

71. (1) Where in respect of any assessment year the net result of the computation under any head of income, other than "Capital gains", is a loss and the assessee has no income under the head "Capital gains", he shall, subject to the provisions of this Chapter, be entitled to have the amount of such loss set off against his income, if any, assessable for that assessment year under any other head.

(2) Where in respect of any assessment year, the net result of the computation under any head of income, other than "Capital gains", is a loss and the assessee has income assessable under the head "Capital gains", such loss may, subject to the provisions of this Chapter, be set off against his income, if any, assessable for that assessment year under any head of income including the head "Capital gains" (whether relating to short-term capital assets or any other capital assets).

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Thanks so for this year should i file ITR3, last year i had only salary income so filed ITR1 

That's right. File ITR3 this year. Last year it's okay. For claiming loss carry forward, you need to file before due date. Now it's late.