Commodity profit
This query is : Resolved
AMIT O. GUPTA
(Querist)
12 August 2011
1) Whether loss in Shares/Commodity Future Trading is treated as Speculative Business Loss???
2) A Pvt.Ltd.Company has earned shares profit u/s 50 of the I.T.ACT. and also it has incurred Shares/Commodity Future Trading Loss. Can profit u/s 50 be set off against Losses of future Trading in Shares/Commodities???
2) A Pvt.Ltd.Company has earned shares profit u/s 50 of the I.T.ACT. and also it has incurred Shares/Commodity Future Trading Loss. Can profit u/s 50 be set off against Losses of future Trading in Shares/Commodities???
Preety Parik
(Expert)
12 August 2011
1.Commodity Trading, Future Trading or Trading in shares which are settled without delivery are speculative transactions. Hence loss in these transactions are Speculative loss.
2. Profit earned u/s 50 is assessable as short term capital gain. Commodity loss being speculative loss cannot be set off against capital gains.
2. Profit earned u/s 50 is assessable as short term capital gain. Commodity loss being speculative loss cannot be set off against capital gains.
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