Claim audit · FY 2026-27
“Set off your F&O losses against salary and get a TDS refund”
The condition that decides it
F&O loss is non-speculative business loss — it can never be set off against salary (s.71 bars it). It CAN offset other eligible non-salary income this year and carry forward 8 years against business income if you file on time. Claiming it against salary invites a 143(1) adjustment.
What the department sees
Broker STT data, AIS, ITR-3 schedule mismatch
Data the Income-tax Department already receives automatically — the reel doesn't mention this part.
The real math
The reel implies a ₹5,00,000 F&O loss can cancel ₹5,00,000 salary and generate a refund. Section 43(5) treats eligible F&O activity as non-speculative business, while section 71(2A) bars business loss set-off against salary. Therefore salary remains ₹12,00,000: ₹12,00,000 − ₹0 permitted business-loss set-off = ₹12,00,000. The ₹5,00,000 loss may offset other eligible non-salary income, if available, and the unused amount can be carried forward for 8 years against business income when the return is filed on time under section 72. A salary TDS refund based only on this prohibited set-off is ₹0. The true disclosure is not criminal merely because the set-off is disallowed, but a 143(1) adjustment can follow. The statute produces a category restriction, not the advertised salary refund.
Questions people actually ask
Sections: 43(5), 71(2A), 72 · We audit claims, not creators. Reviewed by Harun Raaj & Associates, Chartered Accountants · All audited claims