Loss from Futures and Options

I have lost Rs.40000 from Futures & Options trading in equity stocks.I have Fixed deposit interest of Rs 2,50,000.Pension income Rs.40,000.I earned short term capital gains from shares Rs.30,000.No Long term capital gains.I understand that F&O gains/loss is considered as business income/loss.Since I do not have any business income, can I deduct my F&O loss from my Fixed deposit interest income.( Rs 2,50,000 - Rs.40,000).I  am a senior citizen.No savings. As my total taxable income including Short term capital gains from shares will be Rs, 2,80,000(considering F&O loss) which is below 3,00,000 exemption limit , is there any tax liability?
Alternately can I carry forward my losses?
Asked 1 year ago in Income Tax from Hyderabad, Telangana
Dear Sir,

Income/losses from trading in future and options is considered as business income. Since, you have losses, you have to get your accounts audited. 

Yes, you can adjust, this business loss with interest income and there will not be any tax liability.

Please feel free to call/revert in case of any queries.

Thanks and Regards,
CA Abhishek Dugar
caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
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You can setoff loss from F & O from other income in the first year.

You cannot carry forward loss as the system automatically consider the setoff of loss from other income
Shyam Sunder Modani
CA, Hyderabad
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Dear Sir,

F&O is business income and in your case it is a loss, so if you want to set off your losses then you will have to get your books of accounts audited by a CA as the profit is below the prescribed limit of 8%.

Post which you can set off the losses against FD income automatically.

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
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