Can I set off F&O loss against salary?

No. Under Section 71(2A), business loss cannot be set off against salary income. Same-year set-off against eligible non-salary income can be considered under Section 71.

How many years can I carry forward F&O loss?

Up to 8 assessment years under Section 72, but only against future business income — and only if you file the loss return before the due date under Section 139(1).

If I do not file before the due date, do I lose the carry forward forever?

Section 80 and Section 139(3) make return timing critical for carry-forward. Verify the current due date from official sources before filing.

I am a salaried trader with F&O losses. What should I do?

Report salary and the F&O business result under the correct return schedules. Do not net F&O business loss against salary. If you want carry-forward, check the Section 139(1) due date before filing.

AY 2026-27 s.71 / s.72 Loss hub

F&O loss — set off, carry forward, don't waste it.

How to report, set off, and carry forward F&O losses — without losing them to a late filing or a wrong-head set-off.

Check my set-off Calculate turnover first

The four rules

Same year + carry forward

F&O loss is non-speculative business loss under the proviso to s.43(5).
Set off in the same year against any head except salary (s.71 / s.71(2A)).
Carry forward up to 8 years against future business income (s.72).
Carry forward requires the return to be filed before the due date under s.139(1).

Guides in this hub

Read first

How to show F&O loss in ITR with salary

The full filing path for a salaried trader, schedule by schedule.

How to report F&O loss if you don't want to carry it forward

Skipping carry forward is a choice — and it changes which fields you need.

Can F&O loss be set off against salary, interest, rent, capital gains?

Head-by-head breakdown with the right Section 71 / 72 citations.

What happens if you file your F&O loss return late?

Return timing, carry-forward risk, and how to review the position.

Tools

Get the set-off right before you file.

Tell the loss set-off checker your income heads. It tells you what offsets what under s.71 and s.72 — and what carries forward.

Run set-off checker

Loss without audit? Check the rule.

A loss by itself is not the audit trigger. Turnover and 44AD history are. Run the audit checker before you assume.

Run audit checker

Frequently asked questions

Can I set off F&O loss against salary?: No. Under Section 71(2A), business loss cannot be set off against salary income. Same-year set-off against eligible non-salary income can be considered under Section 71.
How many years can I carry forward F&O loss?: Up to 8 assessment years under Section 72, but only against future business income — and only if you file the loss return before the due date under Section 139(1).
If I do not file before the due date, do I lose the carry forward forever?: Section 80 and Section 139(3) make return timing critical for carry-forward. Verify the current due date from official sources before filing.
I am a salaried trader with F&O losses. What should I do?: Report salary and the F&O business result under the correct return schedules. Do not net F&O business loss against salary. If you want carry-forward, check the Section 139(1) due date before filing.