Can F&O loss be set off against salary?

No. Section 71 disallows business loss set-off against salary income.

Can I carry forward F&O loss without filing on time?

No. Section 139(1) due-date filing is mandatory for carry forward under Section 72. Late = forfeit.

AY 2026-27 Sections 70-74 8-year carry

What can your F&O loss offset — and what survives to next year?

The set-off rules in one table. The one deadline you cannot miss. And what the 2025 Act changes from AY 2026-27.

See the rules Read the loss hub

The rules in one table

Same-year set-off

Same-year set-off against	Allowed?
Salary	No
House property	Yes
Business income (other)	Yes
Short-term capital gains	Yes
Long-term capital gains	Yes
Interest / other sources	Yes

Quick rule

Current-year non-speculative F&O business loss sets off against eligible non-salary income. Carried forward, it is restricted to future business or profession income — for 8 assessment years.

No, you don't need an audit to carry forward.

Common myth. Carry-forward only needs timely filing — not audit. Audit triggers are separate (turnover, 44AD trap).

Read the article

Tool

Still need to check audit applicability?

Audit and loss are often confused. Run the audit checker if you're unsure whether 44AB or 44AB(e) applies.

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Frequently asked questions

Can F&O loss be set off against salary?: No. Section 71 disallows business loss set-off against salary income.
Can I carry forward F&O loss without filing on time?: No. Section 139(1) due-date filing is mandatory for carry forward under Section 72. Late = forfeit.