Find
An F&O loss is a non-speculative business loss. It can be set off against other income in the same year except salary, and carried forward for 8 years against business income, if the return is filed by the due date.
ITR
Setting off and carrying forward an F&O loss
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Sec 71, Income-tax Act 1961 (now Sec 109, Income-tax Act 2025); Sec 72, Income-tax Act 1961 (now Sec 112, Income-tax Act 2025); Sec 80, Income-tax Act 1961 (now Sec 121, Income-tax Act 2025)
Analysis
Example: salary ₹12 lakh, FD interest ₹50,000 and F&O loss ₹2 lakh. The loss is set off against the ₹50,000 interest, and ₹1.5 lakh is carried forward. It cannot reduce the ₹12 lakh salary. Carry forward needs an on-time return under Sec 80 (now Sec 121); in later years the loss can be set off only against business income.
Close
- Compute the F&O loss
- Set off against non-salary income in the same year
- Carry forward the balance in schedule CFL
- File by the due date to keep the loss
- Track the loss year by year
Connect now
A Savvy replies in minutes.
Fixed price before you pay. Your Savvy is paid only after you accept the work.
General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.