Answer

1. F

   Facts

   Business losses, including F&O and speculation losses, can be carried forward only if the return is filed by the due date under Sec 139(1). A belated return can report the loss, but it cannot be carried forward.

2. P

   Provisions and law

   • Sec 80 (now Sec 121)Loss can be carried forward only if the return is filed by the due date
   • Sec 139(1) (now Sec 263(1))Due date of return
   • Sec 139(4) (now Sec 263(4))Belated return
3. A

   Analysis

   For AY 2026-27, a non-audit trader's due date was 31 August 2026; filing now as belated loses the carry forward of, say, ₹5,00,000 of F&O loss. If you are an audit case, the extended due date is 21 November 2026, so file by then. The loss is still worth reporting in a belated return for record, but it cannot reduce future profits.

4. C

   Conclusion

   1. 1Check whether your case is audit or non-audit
   2. 2Note the due date that applies
   3. 3File before that date to keep the loss
   4. 4If late, report the loss anyway but plan without it

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.