Adityasaraf and others ... I have heard 2 stories on this.
#1. You can carry your losses for 10 years
#2. You can carry your F&O losses only for 1 year.
Which one is right? Or is there a 3rd option which is "more right"?
#1. You can carry your losses for 10 years
#2. You can carry your F&O losses only for 1 year.
Which one is right? Or is there a 3rd option which is "more right"?
All the income from F&O Transactions carried out on Stock Exchanges are treated as Non-Speculative Business Income and charged under the head "Profits or Gains of Business or Profession".... As such, if there is any loss during the year, you are allowed to carry forward this Loss for 8 succeeding years...... However, to be able to carry forward this loss, you must file your return in time..... ie; as an individual you should file your return by 31st July of the next financial year (For FY 2011-2012, you should file the return by 31st July 2012).....
If you file the return in time, then you are allowed to carry forward this loss from F&O.... and this Brought forward loss can only be set off against the head "Profits or Gains of Business or Profession".....
If you don't file the return in time, you cannot carry forward your losses.....
Hope this clarifies.....