Answer

1. F

   Facts

   No. Business loss, including F&O loss, cannot be set off against salary income. It can be set off against other heads such as house property, capital gains or other sources in the same year, and the rest carried forward for 8 years.

2. P

   Provisions and law

   • Sec 71 (now Sec 109)Set off of loss from one head against another, except business loss against salary
   • Sec 72 (now Sec 112)Business loss carried forward up to 8 years against business income
3. A

   Analysis

   With salary of ₹15,00,000, interest income of ₹50,000 and F&O loss of ₹3,00,000, you can set off ₹50,000 against interest and carry forward ₹2,50,000. Next year, it can reduce F&O or other business profits. The return must be filed by the due date to carry the loss forward.

4. C

   Conclusion

   1. 1Compute the F&O loss for the year
   2. 2Set off against non-salary heads in the same year
   3. 3Carry forward the rest in Schedule CFL
   4. 4File by the due date to keep the carry forward

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