Archive · 26 Sep 2025
Income Tax Q&A: F&O Losses, HRA, and Foreign Share Gains
This article answers common income tax questions.
If you trade in Futures and Options (F&O) and have losses, you can use them to reduce your long-term capital gains tax.
If you pay rent for your own home in Delhi, you can claim HRA, but not for your parents' Mumbai house.
If you make money by selling shares in another country, you must pay taxes on those gains in India, no matter where the shares are located.
The tax rate for long-term gains depends on when you sell the shares.
You can also get a tax credit if you paid taxes on those gains in the other country.
F&O losses can be offset against long-term capital gains.
HRA exemption applies only to rent paid for the employee's residence.
Indian residents are taxed on capital gains from foreign shares.
Long-term capital gains on unlisted foreign shares are taxed at either 20% or 12.5% depending on the transfer date.
Short-term capital gains on unlisted foreign shares are taxed at applicable income tax slab rates.
- Who
- Taxpayers with questions about income tax.
- What
- Answers to income tax queries regarding F&O losses, HRA, and gains from foreign shares.
- When
- Information is current at the time of publication.
- Where
- India, concerning income tax laws.
- Why
- To provide clarity on income tax regulations related to specific financial situations.
- F&O Losses
- Can be set off against income from long-term capital gains.
- HRA Claim
- Allowed for rent paid for the employee's residence, not for parents' residence.
- Foreign Share Gains - Residency
- A resident in India is taxed on global income, including gains from foreign shares.
- Foreign Share Gains - LTCG
- Taxable at 20% with indexation for transfers before July 23, 2024; 12.5% without indexation for transfers after that date.
- Foreign Share Gains - STCG
- Taxable at applicable income-tax slab rates.
- Foreign Tax Credit
- Available for foreign taxes paid on capital gains by filing Form 67.