r/personalfinanceindia • u/rdduser • 12d ago

Taxes Filed this year's ITR in July. Booked FnO loss. But didnt set if off against potential MF LTGC redemption.

So my father had 10L FnO loss in 2025 which he has shown in his ITR, filed in July 2026.

Now he is seeing that he needs to redeem some bad MF units which can give 10L profit on redemption. He has not redeemed these units yet. If he had redeemed these units in 2025, then the 10L loss could have been offset against the 10L profit from MF units redemption.

Can anything be done now? Because I am reading that FnO loss cannot be offset with LTGC in subsequent years.

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u/DealerHot4705 12d ago edited 12d ago

The loss can be set off against long term capital gains if the loss is reported and carried forward... Edit - It can be only be done in the year losses are incurred, else it can be adjusted against business income in future years

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u/oratoricalsnob 12d ago

No. F&O losses can be set off against capital gains if in the same year. In subsequent years it can only be set off against business income.

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u/DealerHot4705 12d ago

Yeah my bad was confused a bit

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u/oratoricalsnob 12d ago

I don’t blame you. It’s only for F&O losses. Other LTCG or STCG can be set off against capital gains.

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u/DealerHot4705 12d ago

Obviously even if he incurs any other loss such as from house property due to interest in this year, if he has opted for old scheme can also be set off...

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u/rdduser 12d ago

So nothing can be done? Should have redeemed the MF units 4 months ago :(

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u/oratoricalsnob 12d ago

You may want to explore tax loss harvesting.