I have incurred a loss of around 7 lakhs in FnO Trading with the overall Turnover of 68 lacs......I am allowed to carryforward my Loss for next year...whether I need to submit any other document as proof of my loss....I made all transactions in Digital mode only. Thanks..

Ans: Hello Kamlesh,

Firstly, I would like to assure you that your loss in Futures and Options (F&O) trading can indeed be carried forward to the next financial year. As per the Income Tax Act, you can carry forward this loss for a period of 8 years.

Now, coming to your query about the documentation, since all your transactions were carried out digitally, you don't need to submit any additional physical documents as proof of your loss. However, it is crucial to report these losses in your Income Tax Return (ITR).

You should report this loss in ITR-3 as it is considered a business loss. While filling out the ITR, you need to provide details of your F&O transactions, including the sale value and purchase value.

Remember, even though the loss is not taxable, it is essential to mention it in your return. This allows you to claim a set-off against any future profits from your F&O trading.

I hope this answers your question. If you have any more doubts, feel free to ask.

Best Regards.