Query reg. nse derivatives loss

Call & Option income/loss is taxable under the head Business income.

Pension is taxable under Salary.

Business loss can not be set-off against Salary income.

So in your case loss from call & Option will not be set-off against Pension income.

Loss from the activity of trading in derivatives carried out in a recognised stock exchange is not to be treated as speculative
loss -sec.43(5).so I assume it as business loss.business loss can be set off against any income other than salary. since you are receiving pension from lic pension funds is taxable under "income from other sources" as their is no employer - employe relationship. so you can set off such losses.

Pension is taxed as Salary, except when received by family.

sir I have already explained why pension is not taxable as salary.

Refer section 17(3) which says:

On retirement, an employee normally receives certain retirement benefits. Such benefits are taxable under the head 'Salaries' as 'profits in lieu of Salaries'.

1) pension received directly from employer--- salary.
But
2)pension received from PENSION FUND -- income from other sources.