F&O Trading Taxation#
Nature of Transaction#
Speculative business income.
Loss Treatment#
- Can set off against business income
- Unset-off loss can carry 4 years
Set-off Rules#
| Loss Type | Can Set Off Against |
|---|---|
| F&O Loss | Business income |
| F&O Loss | Speculative income |
| F&O Loss | Cannot set off salary |
ITR Filing#
- File ITR-3 (Business)
- Maintain trading log
- Show P&L in ITR
Note: Consult CA for complex cases.