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Setoff of loss in F&O

Yogeesha (Service) (70 Points)

10 December 2007

can loss from Future and Options be set off against short term capital gains from sale of shares and securities.

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4 Replies

N V S Pawan Kumar (student) (113 Points)
Replied 10 December 2007

Loss in F&O(derivatives) is a non speculative business loss.Non speculative business loss can be set off against all profits except salary income .Therefore, in my opinion, it can be set off.

(Guest)

As per the new provisions of the Income Tax India.. Setoff of losses with regard to business income which are brought forward nature can be setoff against business income only.... and not with any other income

Yogeesha (Service) (70 Points)
Replied 13 December 2007

i have doubt regarding F&O as a non speculative business, can u clarify me

Bala (CA Practice ) (63 Points)
Replied 16 December 2007

F & O transactions can be treated as capital gains or business income according to the volume, etc. If treated as business income, it is not speculative income. That is what the explanation in s43(5) means