Comment on Classifying Your Market Activity

Sonu commented on 19 Aug 2015, 01:27 AM

Hi Nithin,
Wonderful initiative from you and the team at Zerodha. All the articles and modules have been of great help. Thank you for such thoughtful and helpful content.I have a few questions revolving around carry forward of losses.
1.) I am a trader and had a loss of 4 lacs in F&O. I had filed it in time and since there was no other source of income, it was carried over fully. Next year I made a profit of 1.5 lacs. Now how much is to be the brought forward loss. Is it 4 lacs or is it 2.5 lacs (4-1.5). There is no other income source. 1.5 being non taxable profit, can 4 lacs be carried forward? I understand it is for a maximum of 8 years.
2.) If profit is 3 lacs (which is in taxable bracket), then how much is to be brought forward? Is there an argument that since the full loss cannot be reduced, the 4 continues to be brought forward?
Thanking you in advance

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